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## What Is FTX Token (FTT)?

FTT is the native cryptocurrency token of the crypto derivatives trading platform FTX that launched on May 8, 2019. On Nov. 11, 2022, FTX filed for Chapter 11 bankruptcy protection in the U.S., and is currently undergoing proceedings. Some of the information below may not reflect the current standings of the FTX exchange, please proceed with caution when interacting with the FTT token.

The team behind FTX comprises some of the largest crypto traders over the past few years who, having found issues with most mainstream crypto futures exchanges, decided to launch their own platform. FTX claims that it stands out due to such features as clawback prevention, a centralized collateral pool and universal stablecoin settlement. FTX is a centralized crypto exchange launched by Sam Bankman-Fried in 2019, backed by significant trading companies in the industry, including Almeda Research, OTPP, Temasek, BlackRock, Coinbase Ventures and Sequoia Capital. As of 2022, the platform has over a million registered members, and the daily trading volume has reached billions of dollars.

In regards to clawback prevention, a significant amount of customer funds on other derivative exchanges have been claimed by socialized losses. FTX reduces this by using a three-tiered liquidation model.

On existing crypto futures exchanges, the collateral is fragmented across separate token wallets; this can be difficult for traders as it prevents positions from getting liquidated. On the other hand, FTX derivatives are stablecoin-settled and only require one universal margin wallet.

Another feature of the FTT are leveraged tokens, which allow traders to put leveraged positions without the need to trade on margin. If a trader wants to short Bitcoin with 3x leverage, they can simply buy a 3x short Bitcoin leveraged token on FTX. These tokens are [ERC20](https://coinmarketcap.com/currencies/erc20/)-compatible and can be listed on any spot exchange. FTX currently offers [XRP](https://coinmarketcap.com/currencies/xrp/), [BNB](https://coinmarketcap.com/currencies/binance-coin/), [TRX](https://coinmarketcap.com/currencies/tron/), [BTC](https://coinmarketcap.com/currencies/bitcoin/), [ETH](https://coinmarketcap.com/currencies/ethereum/), [EOS](https://coinmarketcap.com/currencies/eos/), [USDT](https://coinmarketcap.com/currencies/tether/) and [LEO](https://coinmarketcap.com/currencies/unus-sed-leo/) leveraged tokens.

A year after its founding, FTX Exchange introduced the exchange token called FTX Token or FTT. The FTT coin is an [ERC-20](https://coinmarketcap.com/alexandria/glossary/erc-20) standard token that is actively used by ecosystem participants.

Initially, FTT was established as a reward for exchange transactions; however, over the years the list of functions has grown:

FTT is applicable in the creation of leveraged tokens on the FTX Exchange; users can receive VIP discounts in the form of FTT depending on the number of coins they own, and it’s possible to earn rewards for providing liquidity through futures positions.

In order to maintain its value, the exchange regularly buys back and burns its tokens, spending on the purchase of FTX: 33% of trading fees, 10% of the reserve fund, and 5% of other commissions.

FTT Token use cases:

1/3 of the commissions received from transactions on FTX are utilized to buy back FTT. Tokens redeemed in this way are burned;

FTT tokens are used to reduce trading fees and to secure futures positions;

Profits from massive market movements are distributed among the holders;

By purchasing a white label version of FTX’s OTC portal and futures market, institutions and investors pay expenses in FTT tokens;

By creating leveraged tokens, projects can pay listing fees with FTT;

Users can stake FTT to benefit from discounts, bonus votes, and blockchain fee waivers.

One benefit of FTX Token (FTT) is commission discounts. Members pay a low fee and obtain tighter spreads. Traders use FTT as collateral, and those who are active on FTX Exchange see percentage differences of up to 60%. Traders get insurance protection, which ensures a net profit in moments of market volatility, then makes it possible to continue trading even without a margin call.

In addition to the fact that FTT is useful for opening positions with leverage, FTT staking also offers perks: discounts, the opportunity to win [NFTs](https://coinmarketcap.com/alexandria/glossary/non-fungible-token), participation in airdrops, bonus votes and IEO tickets.

## Who Are the Founders of FTX Token?

The FTX Token or FTT was founded by Sam Bankman-Fried and Gary Wang.

Sam Bankman-Fried is the co-founder and chief executive officer at FTX: Cryptocurrency Derivatives Exchange. He is also the CEO of Almeda Research and worked as a director of development at the Centre for Effective Altruism. He was also a trader at Jane Street Capital from 2014 to 2017.

Bankman-Fried studied physics and has a bachelor’s degree from the Massachusetts Institute of Technology.

Gary Wang is the co-founder and chief technology officer at FTX: Cryptocurrency Derivatives Exchange. He is also the chief technology officer at Almeda Research. Before this, he worked as a software engineer, after moving up from a software engineering intern at Google. He was also a software engineer intern at Facebook. 

He has a Bachelor's degree in mathematics and computer science from the Massachusetts Institute of Technology.

## FTX Token (FTT) “Buy and Burn” Driving Deflationary Tokenomics

FTX Token (FTT), the native token of FTX derivatives exchange, is a deflationary cryptocurrency. Over 20 million FTT tokens have been permanently removed from circulation using the tokens “buy and [burn](https://coinmarketcap.com/alexandria/glossary/burned)” mechanism. 


## FTX Exchange Globalization Bringing FTT to New Markets

For the past few months, FTX has been making its way into more significant markets. The latest markets it has penetrated include Dubai and, South Korea's second-largest city, Busan. Dubai gave FTX full approval to operate in the Emirate while it reached an agreement with Busan to establish a Korean branch. With more markets, FTT, the utility token of the exchange, is expected to see more usage, which will also translate to more burns. 

Meanwhile, the FTT token has also been getting listed on more exchanges. In February 2022, Bitget became the 49th crypto exchange to [list](https://support.bitget.com/hc/en-us/articles/4419474449817-Bitget-Lists-FTX-Token-FTT-in-Innovation-Zone) FTT for trading on its platform. Similarly, TokoCrypto added a new FTT/ETH trading pair on its platform. 

The exchanges with the biggest trading volumes of FTT remain Binance, FTX and Bitcoin.com.

#### Related Pages:

Learn more about [TomoChain](https://coinmarketcap.com/currencies/tomochain/).

Learn more about [Aave](https://coinmarketcap.com/currencies/aave/).

Learn more about [mining Monero](https://coinmarketcap.com/alexandria/article/how-to-mine-monero).

Discover a lot more crypto news on our [CoinMarketCap blog](https://blog.coinmarketcap.com/).


## How Many FTX Token (FTT) Coins Are There in Circulation?

FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading with a focus on institutional-grade solutions.

The FTX Token is the backbone of the FTX ecosystem, which was designed to increase network effects and demand for FTT as well as decrease its circulating supply.

FTT has a circulating supply of around 94 million tokens as of February 2021 and a total supply of about 345 million.


## How Is the FTX Token Network Secured?

FTT is an ERC-20-compatible exchange token. The Ledger Nano X/S hardware wallet allows users to securely store and manage the FTT tokens via its Ethereum app.

Both the FTT and the leveraged tokens security audits are done by the Blockchain Consilium auditing firm.


## Where Can You Buy FTX Token (FTT)?

FTX Token or FTT can be purchased, sold and traded on several exchanges, including:

[Binance JEX](https://coinmarketcap.com/exchanges/binance-jex/)

[HitBTC](https://coinmarketcap.com/exchanges/hitbtc/)

[Huobi Global](https://coinmarketcap.com/exchanges/huobi-global/)

[Binance](https://coinmarketcap.com/exchanges/binance/)

If this is your first time purchasing, trading, or selling Bitcoin, you can [learn more about the process here](https://coinmarketcap.com/how-to-buy-bitcoin/).
