The FTX exchange announced that it has started burning FTT tokens with the amount of 420,947 FTT
FTX exchange has just announced that it has started burning FTT tokens with a record amount and total value of 420,947 FTT, equivalent to $ 3.6 million.
What is FTX?
FTX is a crypto exchange backed by Alameda Research, a top cryptocurrency liquidity provider. It is among the top five derivatives exchanges by volume. Binance, a leading cryptocurrency exchange, invested a large sum in FTX in December 2019. This shows that it is a promising and trustworthy platform.
FTT is the native token of FTX Exchange. It gives certain perks to the users such as low trading fees, gains from FTX insurance fund, etc. This token has been carefully designed promotions to increase the effect and demand for FTT and to reduce the circulating supply.
FTX burns FTT tokens with a total record value
In the latest tweet, SBF – CEO the exchange – said:
Unsurprisingly, FTX just did its largest buy and burn ever.https://t.co/R8zegXKtku
420,947 FTT ~ $3.6m pic.twitter.com/yxMIRjypwY
— SBF (@SBF_Alameda) January 12, 2021
This is a very large number and in the ascending cycle of the last 5 burns. Information and price trends in the last 5 token burns are shown in the chart below.
Usually, these acquisitions and burns show two positive points. One is the high transaction volume, the market is very active, so it can create a large source of FTT for the acquisition process to burn. Second, it will help reduce the same source of FTT, help token comic balance and the price of FTT will tend to increase in the future.
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