What Is FTX Token (FTT)?
FTX is a cryptocurrency trading platform that is being considered the next big crypto exchange. FTT is the native token of FTX. The native taken was launched on May 8, 2019.
Low fees, Deep order books and tight schedules are the qualities found in FTX, which attract investors towards it.
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Sam Bankman-Fried launched Alameda research in 2017. Alameda research is a Quant trading firm and liquidity provider founded by Bankman following the rise of Bitcoin. Later, he, along with Gary Wang, founded FTX.
Sam Bankman-Fried is an alumnus of MIT. He got inspired by Effective Altruism, a philosophical and social movement that promotes the use of evidence and reason to find out how to help others in the best way and take actions according to it.
On the basis of the maker and taker model, FTX spot markets and competitive futures ranges between 0.04%- 0.07% for market takers. On the other hand, leveraged tokens have a daily management fee of 0.03% and a creation and redemption fee of 0.10%.
In addition to the leveraged tokens, FTX also provides key product offerings such as futures, options, MOVE contracts, and spot markets.
There are nine fiat currencies supported by FTX, where the investors can trade and withdraw through a wire transfer. The U.S. dollar, Singapore dollar, Australian dollar, Hong Kong dollar, Canadian dollar, Brazilian real and Swiss franc constitute the nine fiat currencies backed by FTX.
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What Makes FTX Token Unique?
Almeda Research is a leading crypto trading company and is among the largest liquidity providers. Almeda research supports FTX and has helped in making it unique.
FTX is a product designed with quite precision by professionals who possess knowledge and expertise in the industry. They have covered many services, including collateral, liquidation processes, maintenance margin and product listing. FTX says its priority is on the rapid development cycles, allowing them to operate crypto trading systems quickly.
FTX’s Unique Strengths
The team of FTX has fully leveraged their experience in order to make a comprehensive platform. Following are the unique points that differentiate FTX from other crypto platforms:
Prevent Clawback Occurrence: FTX notably reduces the probability of clawback occurrences with their liquidation engine, which is a three-tiered liquidation model.
Universal Stablecoin Settlement & Centralised Collateral Pool: FTX derivatives are stable-coin settled and need just one universal margin wallet.
Innovation: FTX is constantly evolving itself and launching new products to capture the market’s developing needs.
Features Of FTX:
Leveraged tokens: Leveraged tokens are also another feature of FTT. Leveraged tokens are ERC20 tokens that provide leveraged exposure to crypto. There are two types of leveraged tokens available: Hedge (1x tokens) or Bull/ Bear (3x tokens). Leveraged tokens can be listed on any exchange.
Leveraged tokens also let traders put leveraged positions without having to trade on margin. For instance, traders can purchase a 3x short Bitcoin leveraged token on FTX if they want to short Bitcoin with 3x leverage.
Futures: With more than 100 quarterly and perpetual futures pairs with margins of up to 101x, traders can take both long and short bets on top cryptocurrencies. For opening and maintaining positions, the platform offers Stablecoins such as USD and tether (USDT) as collateral.
In financial terms, Futures are financial derivative contracts that compel the party to trade an asset at a fixed date and price. The buyers and sellers are obliged to purchase and sell the underlying asset at the set price, at the expiration date, regardless of the current market price.
Options: This feature allows traders to guess the future price direction, offering a range of call and put options to hedge against their open position. It does not oblige a holder to buy or sell at a future stake price but gives them the right to do so.
MOVE: These contracts give traders the liberty to bet how far the price of a cryptocurrency will go over a period of time, regardless of direction. In simple terms, letting them play on volatility. The contract generates a profit as long as the price of the underlying crypto asset moves over a particular dollar amount, regardless of it is going up or down.
Spot Markets: FTX provides exposure to top crypto assets such as Ethereum, Binance Coin, Bitcoin, Chain Link, and Ripple’s XRP by offering more than 100 different spot trading pairs.
Who Regulates FTX?
Headquartered in the Bahamas, FTX does not cater to the crypto needs of U.S residents as they can trade on FTX US instead. In September 2021, the FTX shifted its headquarter from Hong Kong.
FinCEN helps U.S-based crypto traders to access FTX US. FTX US rebranded itself as FTX US derivatives after completing its acquisition of LedgerX in October 2021.
The U.S. Commodity Futures Trading Commission (CFTC) has licensed FTX US derivatives as Derivatives Clearing Organization, Swap Execution Facility and Designated Contract Market.
Management and Capital Structures
The security commission of the Bahamas regulates the FTX Digital Markets Ltd. unit. FTX and FTX have overlapping management teams. Sam Bankman-Fried acts as a chief executive officer with co-founder Gary Wang as chief technology officer in both the firms. The capital structures of both institutes are different, though.
In January 2022, the company valuation was $32 billion. The firm also closed a $400 million Series C venture capital funding round. IVP, SoftBank Vision Fund 2, Lightspeed Venture Partners, Temasek, Paradigm, Ontario Teachers’, Pension Plan Board, Insight Partners and Tiger Global are the investors who participated in the fund-raising rounds. Investors in the funding round also participated in a series of funding rounds together for FTX US valuing that company at $8 billion.
FTX Price Prediction:
At the time of writing, the FTX price stands at USD 45.97, with a 24-hour trading volume of $124,143,038. FTX Token has been up by 5.44% in the last 24 hours. Its current circulating supply is 138,024,908 FTT coins while it has a max. Supply of 352,170,015 FTT coins.
The price prediction of a token looks quite promising:
Wallet Investor anticipates a long-term increase based on our forecast system; the FTX Token price rise is expected to be $535.252 for 2026. The revenue is expected to reach around +1383.47% with a 5-year investment.
According to the latest news and price forecast, the Reddit community predicts the coin price will reach its highest price of $52.37. The price value can go up to $64.88 by 2023.
Source: https://www.thecoinrepublic.com/2022/02/15/complete-beginners-guide-to-ftx-token-will-ftx-token-hit-the-mark-of-64-88-by-2023/