FTX is a new cryptocurrency derivatives exchange that differentiates itself from others by offering a range of indices as well as leveraged tokens for trade. The FTX Token (FTT) is an interesting exchange token which is issued by the FTX exchange to power its ecosystem and offer utility in operations.
🏆 Top 3 Brokers Crypto Trading Platforms
Choose your quick section of our FTX Token review below.
A Quick Overview of our FTX Token Review:
FTX Token exchange allows for the trading in cryptocurrency markets through futures and leveraged tokens without the trading needing a margin account.
FTX Token Live Price
What is FTX Token?
FTX is a new cryptocurrency derivatives exchange that differentiates itself from others by offering a range of indices as well as leveraged tokens for trade. The FTX Token (FTT) is an interesting exchange token which is issued by the FTX exchange to power its ecosystem and offer utility in operations.
Key Features and Takeaways of FTX Token
FTX is a new and popular take on trading cryptocurrency trading and it, along with its native token, FTT, have the following features and takeaways:
The genesis block for the FTT token happened in April 2019, however, the token did not begin trading on exchanges later during the same year.
Both the FTX exchange and the FTT token were launched with the help of Almeda Research which is a full-service crypto trading firm.
FTX exchange allows for the trading in cryptocurrency markets through futures and leveraged tokens without the trading needing a margin account.
FTX exchange was created to avoid any clawbacks in cryptocurrency exchanges through a three-tier liquidation model which makes use of rate-limited orders for the closing of positions. It also takes advantage of insurance funds that prevents losses to traders.
To safeguard traders, FTX exchange shares collateral across all tokens in a singular universal stablecoin wallet. This model is designed to mimic the function of traditional futures markets and allows traders to enter short positions or leverage their funds without having to use either margin or futures.
FTX, as opposed to some other exchanges incorporates three crucial features namely liquidity, innovation, and risk control.
There is a key difference in cryptocurrency futures that cannot be found in traditional futures markets namely the possibility for traders to give back some gains to maintain solvency of the exchange.
FTT was created to be used on the FTX exchange and it is an ERC20 token, created on the Ethereum blockchain, functions as the lynchpin on the FTX ecosystem, which boasts with many uses in the exchanges operations.
The FTT token provides users and holders with discounted trading fees from 3% up to 60%, depending on the amount of FTT which is held.
Socialised gains, which is a way through which FTX avoids clawbacks through funding an insurance account that protects traders when there is a volatile market.
FTX controls the FTT token supply by increasing the price. One third of the fees that are generated by the exchange is used to buy back FTT tokens and burn or destroy them. FTX claims that this process will be followed until 50% of all tokens have been burnt.
White label solutions, which is a method through which additional income can be made by selling or leasing the framework of FTX’s product to others.
FTX is one of the largest cryptocurrency exchanges in the world with trading volumes that exceed 6.9 billion ZAR and as result of the partnership with Alameda Research, FTX can act as an over the counter (OTC) platform as well.
FTT can also be used as collateral on the FTX trading platform, subsequently increasing the demand if FTX provides incentive soon for the use of FTT as collateral rather than users using other assets such as Bitcoin or Tether.
FTX has stated that they plan on launching their proprietary spot trading platform soon, however, there is no projected date yet for this. This platform is set to lead to an IEO platform that is like that of the Binance Launchpad.
FTX Token Mining
Overview
FTX is an innovative, popular cryptocurrency exchange that relies on blockchain technology to offer financial services and products to OTC traders. There is a wide range of cryptocurrencies offered that can be traded by using leverage, including derivatives, options, volatility products, and more.
For this reason, FTX has its own utility coin to facilitate operation on the exchange. FTT, the native token for the FTX exchange, is an ERC20 token which is showing an increase in popularity for several reasons.
However, due to the nature of FTT and the operations of the FTX exchange, the token cannot be mined. FTX makes use of a Proof-of-Stake consensus method through which transactions are validated and therefore FTT can be staked.
Staking involves users locking their coins in their wallet for a certain period and it has several benefits, including:
Increased referral rates as referrers can stake FTT to receive a higher percentage of fees.
Maker fee rebates that can be made.
Bonus votes in FTX’s polls in addition to the standard number of votes, depending on the FTT that the user holds and trading volume.
Increased airdrop rewards.
Stakers also get access to IEOs which are hosted on the FTX exchange.
How to stake FTT
FTT can be staked on the FTX exchange by following these simple steps:
Navigate to the FTX website, select markets, and select the FTT pair that the user wishes to stake.
Navigate tot the FTT page and select “FTT” from the top toolbar.
Scroll to “FTT Staking” and select “Stake”.
Enter the amount to be staked and select “Stake”.
Special Considerations
To stake FTT, users must take note of the following conditions before they consider staking on the FTX platform:
To stake, all users must pass at least one of the “Know Your Client” or KYC 1 to own and/or stake FTT.
Only users who have passed the KYC 2 will be allowed to claim SRM rewards.
All users who want to stake FTT must ensure that they comply with the FTX Terms of Service.
When unstaking FTT, the tokens will remain locked for up to two weeks before they are released.
FTT that has been locked in a stake cannot be used as collateral, only free FTT can be used.
From the two things that will set the users fees, for instant maker rebates, the user will receive the better of the two.
Take fees after discounts and benefits may not be lower than 0.015%.
Where non-VIP fees are concerned, taker fee subtracted from referral rebates may not go lower than 0.03% and if it does, the excess will be subtracted from the referral rebates.
Referral rewards cannot be claimed from referring a VIP account; however, VIP accounts can still receive rewards when they refer others.
Other promotions including external referral programs has the potential to modify referral behaviour.
FTX reserves the right to modify any rules associated with staked FTT at any time, without warning.
FTT which has been locked will not be considered eligible for staking.
Pros and Cons
| ✔️Pros | ❌Cons |
|---|---|
| Developed by experienced individuals | Leverage is a risky tool that may lead to significant losses that can exceed the initial deposit of traders if abused or used incorrectly |
| FTX exchange offers a variety of derivative products | FTX exchange is a new platform and there is a lot of competition in the field against world-class brokerage firms |
| FTX exchange charges less fees | FTX exchange is less battle-tested than other competitors |
| FTX exchange is known for high liquidity | The user interface is not attractive |
| FTX exchange is a regulated and trusted entity | |
| FTX exchange offers tradable altcoin indices |
Transaction Fees
| Type of Fee | Information |
|---|---|
| Maker Fee | 0.02% |
| Taker Fee | 0.07% |
Should you buy FTX Token?
Margin trading is a popular activity in the trading community and the fact that traders can go both long and short to make a profit is more appealing when compared to standard spot trading.
In addition to this, leveraged trading is also quite common and FTX exchange tries to bridge the gap between leveraged trading and traditional trading HODL-ing (Hold On For Dear Life) mindsets that crypto traders often have.
FTX offers tokens that have values representing a leveraged valuation of popular cryptocurrencies and in addition to this, its own token, FTT is quite popular and has a wide variety of uses. With an increase in popularity of the exchange, FTT is set to increase in value and use cases as well.
FTX and FTT are showing increases in investment potential with the field becoming more competitive as more exchange become more versatile in their offerings.
How to buy FTX Token (FTT)
Step 1 – Open an account on Binance
Navigate to the official Binance website and select “Register Now”. You will be redirected to a “Create a Free Account” where you can either register with your email address or your mobile number.
You can enter your email address and user-selected password or select the “Mobile” option at the top of the form. Select your country code and enter your mobile number along with your user-selected password.
Once you have completed the necessary fields, you can read and accept the Terms of Service before selecting “Create an Account”.
You may have to complete a Security Verification that will confirm that you are not a robot. Next, there is an account verification. During this, a 6-digit verification code is sent to the email address or mobile number that you provided. The code is only valid for 30 minutes and must be entered in the blocks provided on this page.
Once the verification is completed, a welcome page will load, and you will be given the options through which you can either trade or purchase cryptocurrency. If you are new to crypto, you can visit the “Learn More” Section at the bottom of the page.
Step 2 – Secure account with two-factor verification
On the trader’s dashboard, select the option to secure your account with two-factor verification. Even though phone verification is a secure option, the most preferred and secured method is to make use of the Google Authenticator.
Once downloaded and installed, either scan the QR code or type in the one-time, unique code provided to add your Binance account credentials onto Google Authenticator.
Once completed, write down the back up key provided to recover your account on Google Authenticator in case you lose or misplace it. In the final step, enter the 6-digit code which you will receive on your registered email address along with the Google verification code.
Step 3 – Deposit funds
Binance allows for the purchase of cryptocurrencies via fiat deposits as well as cryptos. Deposits can be accessed from the following locations:
The “Welcome to Binance” banner.
Hovering over “Buy Crypto” at the top of the webpage and selecting your preferred method.
Selecting “Deposit” on the “balance details” section on your traders dashboard.
Once you have selected the option to “Deposit”, you can select whether you wish to deposit cryptocurrencies from another wallet, or whether you want to make a fiat deposit.
For Crypto deposits, follow these steps:
Select your coin between Bitcoin, Ethereum, TetherUS, BNB, or ETC.
Select the network to be used between BEP2, BEP20 (BSC), ERC20, or TRC20 and accept the conditions for using the network.
Copy the address or scan the address QR code from the wallet where you are depositing and follow further prompts. Kindly note that each network has its own set of network confirmations between 1 up to 15 confirmations before the deposit will be done.
For deposits in Fiat currencies, follow these steps:
Select the deposit currency from the dropdown list. To gain access to more currencies, it is necessary to verify your identity and face.
Select the payment method to be used, depending on the currency chosen.
Enter the deposit amount and any other details. Kindly note that the transaction fee will be displayed along with the balance after this is subtracted.
Continue with the deposit.
Step 4 – Start Trading
Once you have completed your deposit, you can navigate to the “Markets” section at the top of the page to view the available cryptocurrencies. From here, you can buy, sell, and trade currencies at competitive prices.
🏆 Top 3 Brokers Crypto Trading Platforms
Frequently Asked Questions
When was FTX Token first launched?
FTX was launched in April 2019.
Who founded FTX Token?
FTX and FTT were founded by Sam Bankman-Fried and Gary Wang.
What is “ICO”?
It is Initial Coin Offering that, unlike an IPO, does not mean that those who invest in the cryptocurrency will have an ownership stake of the company that they provide funds to.
When was FTX Token’s ICO and how much did it raise?
February 2018 and raised 344 million ZAR.
Is FTX Token legit?
Yes, both FTX and FTT are legit.
What is FTX Token’s total supply?
FTT’s maximum supply is 100,000,000.
What is the purpose of FTX Token?
FTT is used to power the FTX ecosystem and provide utility in the operations of the FTX exchange.
On which blockchain is FTX Token based?
FTT is an ERC20 token which runs on the Ethereum blockchain.
Does FTX Token work with smart contracts?
Yes, FTX allows borrowers to create customized and simplified smart contracts on the Ethereum blockchain.
Does FTX Token have potential to become more valuable?
Yes, FTT is set to increase in value as the FTX exchange becomes more popular.
