FTX is nothing but a crypto derivatives trading platform where FTT is a native FTX currency token. FTX is a virtual currency derivatives exchange focused on building a platform that is accurate enough for first-time users and a platform strong enough for professional trading firms around the world.FTX is sponsored by digital currency provider, Alameda Research. Alameda Research is a company that deals in statistical trading and controls more than a billion dollars in virtual assets. The FTX Token is an ERC token - 20 on the Ethereum blockchain and the traditional cryptography of the FTX Derivatives Exchange.
Sam Bankman-Fried is the founder and CEO of the FTX Cryptocurrency Derivatives Exchange. He is also the CEO of quantitative trading firm Almeda Research. He was previously a businessman at Jane Street Capital and was the director of development at the Center for Effective Altruism. Gary Wang is the founder and CTO at FTX and the CTO at Almeda Research. He previously worked as a software engineering instructor at Google and Facebook. They started Alameda Research in 2017, before launching FTX.
The co-founders decided to launch their platform after experiencing some problems with the most common virtual currency exchange in the marketplace. FTX was created to solve the problems of existing cryptofutures trading, such as lower currencies, slower trading, and clawbacks, which occur when funds are taken from traders to compensate for the losses of othertraders.
FTX says the platform is the best in the industry due to a number of factors including the central collateral pool, clawback prevention, and stablecoin settlement available worldwide. FTX has an insurance fund that offers all the benefits when there is a significant price movement in the market. The rest of the profits are still distributed among FTT token holders. · Clawback Prevention- The FTX forum uses a three-layered locking model to prevent clawbacks. Some crypto derivatives exchanges have problems with customer finances demanding public losses, so the FTX model is set to prevent that from happening. · Centralized Collateral and Universal Settlement- Based on FTX platforms it is resolved using stablecoins using a single universal margin wallet. This is different from other crypto futures markets, which separate the deposit into many different wallets. · Leveraged Tokens- Instead of using a standard margin trading model to make trading more accessible to repeat their profits, FTX offers profitable token trading. The measured token feature allows traders to take a higher position without trading on borders.
Some use cases of FTT token are: · Trading Fees- The future trading costs of FTX are small and the spread of OTC is strong compared to other crypto exchanges. · White Label Solutions- The diversity of the white label of the FTX OTC site and the futures market has aroused the curiosity of crypto institutions and large investors where purchases will be provided by the FTT token. · FTT as Collateral- To increase the demand for FTT overtime, it can be used as collateral for future trading. · FTT Token Value- The value of the FTT token is directly proportional to the future expansion and development of the FTX platform. FTT token holders can expect an increase in their investments as the price of FTT goes up. · Create Leveraged Token Listing- Upcoming projects can pay off and produce tokens available in their own currency. · Token Burn/ revenue Share- FTT purchased from FTX will have transaction fees, one-third of which will be used to repurchase FTT tokens and later become part of the burning process.
DATE NEWS/EVENTS IMPACT 31/08/2021 FTT announced its partnership with LedgerX, to provide CFTC-issued alternative cryptocurrencies in the US market +34% Increase 21/07/2021 FTX raises $900 million dollars from 60 investors, which led to bringing their total valuation to $18 billion +25% Increase 18/05/2021 China closes financial, payment, and cryptocurrency trading institutions -46% Decrease
Traders look for liquidity and FTX is a crypto exchange for tons of liquidity. In addition, FTX also expanded and allowed strong trading in S & P500 shares such as Tesla and Amazon. In terms of crypto, FTX counts multiple DeFi tokens. Alternatively, if you hold FTT tokens you get a discount on the payment. So, FTX is one of the best crypto exchanges out there.
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