What is FTX coin?

By Dorothy On Jun 1, 2020

FTX is a trading platform specializing in derivative products and some other products related to cryptocurrencies including Futures Contracts, MOVE Contracts, Margin, Spot trading, OTC.

FTX was built and developed by Alameda Research, one of the most famous market maker companies in the crypto world. FTX is considered as the most diversified derivative trading platform to date.

In addition to a variety of trading products, FTX is more prominent than other derivatives such as Bitmex, Binance Futures, Huobi DM and Snapex.

What is FTT?

FTT tokens are Utility Tokens and also Native Tokens used on FTX exchanges. The correct name will be FTX Token or FTT, but in this article, I would like to use FTT Token for ease of understanding.

Currently, FTT is still an ERC-20 token built and operated on the Ethereum Blockchain. This token is used to pay for some services as well as pay transaction fees on FTX.

What is FTT used for?

FTT is a Native Token of FTX and of course the main purpose of FTT will revolve around the ecosystem of FTX. And the specific uses of FTT are:

FTT Token is used as collateral for Futures Contracts, MOVE Contracts transactions.
Reduced transaction fees for Holder FTT on FTX
Receive Rebate when trading OTC against Holder FTT
FTX will also burn Token like many other exchanges. 1/3 of the revenue from fees that FTX collects from users will be used to redeem FTT Tokens and burn. According to information, the floor will burn FTT until half of the total supply. For OTC users, the exchange also receives transaction fees from OTC, the exchange will also be used for the purpose of burning tokens.
Use FTT Token to buy Whitelabel on FTX
Use FTT to release IEO if available in the future

Pros and Cons

Advantages:

Market transactions of the floor fully meet the current needs such as:

Derived products (futures), margin trading and OTC.
Deposit and withdraw coins without fees.
FTX has an API port that makes it easy to link their accounts to portfolio applications or trading bots.
Since being put into operation up to now, the floor has not had any serious errors such as lag, slow, hacked …
FTX has a floor coin of FTT Token (FTT). However, this token is still in development, not yet promoting the necessary features of a floor coin.
Provide full API Key for those who want to use 3rd party tool to trade.

Disadvantages:

There are not many coins on the floor, the number of Altcoins is quite small. List of currently traded coins: FTT, BTC, ALT, MID, SHIT, OKB, HT, LEO, ETH, USDT, BCH, ALGO, BNB, EOS, LTC, BSV, XRP, TRX.
Besides, because the wallet is a new exchange, 24h transaction volume is still low so it is difficult to meet the entire transaction needs. Statistics on Coinmarketcap also do not have much data.
FTX floor does not have applications for Android and IOS, so when you need to trade, you must use a laptop.

Team

The FTX exchange was co-founded by Sam Bankman-Fried and Gary Wang. Both are also founders of Alameda Research, a quantitative trading company based in Hong Kong. Although both are founding members of Alameda Research and FTX, the two companies are completely separate entities.

Sam Bankman-Fried. Image via abasummit

Other notable members include Andy Cro Afghanistan, COO, Constance Wang, Partner Manager and Darren Wong, Head of Business Development.

The future of FTX Token

Based on the purpose of the use of the FTT Token, we see that the direct components that need to use it are traders / direct users of this exchange. In the future, as the number of traders increases, the demand for purchases and FTT Token increase (used to reduce fees and use other services also increase), will affect the price of the Token. In the future, some of the features that the platform may launch such as allowing the issuance of IEO, or charging FTT transaction fees with OTC Exchange will also help increase the demand for FTT Token.

In addition, the buyback and burn token program will help reduce token circulation in the far future. This will also partly create token scarcity and help keep its price.

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