What is FTX Token (FTT)? Everything you need to know about FTT

Sam Bankman-Fried is the founder and CEO of Alameda Research, a quantitative crypto trading firm that manages $2.5 billion worth in assets as well as FTX, one of the first cryptocurrency derivatives exchanges created for institutional investors. 

FTX is a cryptocurrency derivatives exchange that offers futures and leveraged tokens on both individuals and baskets of crypto assets. Today’s article will provide every information related to the FTX Token, including:

• What is FTX Token? What is FTT?
• Tokenomics, key metrics and use cases of FTT.
• How to buy, earn and store FTT.
• Team, investors and potential of FTX Token.

What is FTX? 

FTX is a new cryptocurrency trading platform developed by Sam Bankman Fried, an expert in the crypto space. The company offers specialised options for its users to trade and invest with more leverage than other platforms, which can lead traders down one of many paths - including volatility products such as leveraged trades or margin trading.

Updated Nov 12, 2022: Sam Bankman-Fried has officially resigned as CEO of FTX, FTX and Alameda Research have filed for bankruptcy.

How does FTX work?

The FTX exchange provides uniques features compared to other platforms such as:

• Provide Clawback Prevention function using a three-tiered liquidation model.
• Support Centralised Collateral Pool and Universal Stablecoin Settlement.
• Innovative New Products.

The exchange has rapidly become the go-to crypto investment platform for many institutional clients in recent years. This meteoric rise is due to FTX's well-designed trading system, which offers advanced features and tools that are perfect for experienced traders but also accessible enough to newcomers who need a little help getting started with their investments. 

The exchange compares favourably against other established cryptocurrency exchanges on offers such as Binance, OKEx and Huobi.

What is FTT Token?

FTT is the native cryptocurrency of FTX. The whitepaper states that it was designed to be a backbone for their platform and drive it forward. 

Originally, FTT token was offered as rewards to exchange transactions but now fulfils other functions within its ecosystem, such as VIP discounts depending on the number of coins held by users or rewards for providing liquidity through futures positions trading with their own FTT currencies.

Details information about FTT Token

FTT Token Metrics

• Name: FTX Token.
• Ticker: FTT.
• Blockchain: ERC-20 & SPL.
• Token Type: Utility.
• Initial Supply: 200,00,000.
• Total Supply: 345,219,294.
• Max Supply: 352,170,015.
• Circulating Supply: 94,346,957.
• Contract Address: 0x50d1c9771902476076ecfc8b2a83ad6b9355a4c9

FTT Token Allocation

FTT tokens are distributed as below:

• Company Tokens: 25% with 87,500,000 FTT.
• Liquidity Fund: 20% with 70,000,000 FTT.
• Team Tokens: 20% with 70,000,000 FTT.
• Fund Insurance: 5% with 17,500,000 FTT.
• Safety Fund: 5% with 17,500,000 FTT.
• Adviser Tokens: 5% with 17,500,000 FTT.
• Ecosystem Fund: 10% with 35,000,000 FTT.
• User Acquisition Fund: 10% with 35,000,000 FTT.

FTT Token sale and release schedule

Locked FTT tokens will automatically be unlocked into FTT according to the following schedules:

FTT Token use case

• Token Burn/ Revenue Share: Approximately one-third of all fees generated on FTX will be used for an FTT repurchase; access here for more information. Any FTT bought this way will be burned.
• Discount on trading fees:  FTT tokens will also be used to reduce fees for trading activities.

• Collateral: FTT tokens might be used as collateral for futures positions. This increases the demand and utilities of FTT.
• Socialised Gains: A portion of the gain during large market movements will be socialised among FTT holders.
• Leveraged Token Listing Fees: Projects can use FTT to pay for listing fees when creating their leveraged tokens.
• White Label Solutions: Crypto institutions will have to pay costs in FTT while purchasing a white label version of FTX's OTC portal and futures exchange
• Future Expansion: FTT is the backbone of the FTX ecosystem. It will become even more useful once we add other derivative products to the platform, making this token an essential part of everyday trading on the FTX exchange.
• Staking: Users can stake their FTT for various benefits such as marker fee rebates, bonus votes and waiving blockchain fees. Unstaking FTT takes 14 days and will not contribute to any staking rewards.

How to buy FTT using Coin98 Exchange

You can use Coin98 Exchange to swap other tokens for FTT following these simple steps with: https://exchange.coin98.com

Step 1: Connect Coin98 Extension Wallet.

Step 2: Select Uniswap.

Step 3: Choose coin/token for trading:

• Search FTT.
• If the search does not come up, you can paste the contract of FTT into the search box: 0x50d1c9771902476076ecfc8b2a83ad6b9355a4c9

Step 4: Adjust the amount you want to swap.

Step 5: Adjust the gas fee, then click Approve.

How to mine FTT

Mining FTT is not possible because it is a token.

How to store FTT using Coin98 Wallet

You can store, send, receive FTX Token on Coin98 Wallet with a few single steps. The guides on how to make transactions with FTT on Coin98 Wallet are as follows.

How to receive:

• Open Coin98 Wallet & click Receive on the home screen.
• Search FTT Token.
• Click on the correct result, copy the wallet address and send FTT to this address.

Team, Investors, and Partners

Team

The FTX team currently has five members, led by Sam Bankman-Fried and Gary Wang:

• Sam Bankman-Fried: Sam has been in the finance world for a long time, with experience trading equities and other assets. He graduated from MIT as well, which explains how he could create an automated system for Jane Street Capital's OTC desk.
• Gary Wang: A former engineer at Google and founder of FTX, is an expert on building systems to aggregate prices across millions of flights. He graduated from MIT with degrees in Mathematics and Computer Science.

Investors

FTX has had a very successful 4-year run and has been making waves with its recent investments from Coinbase Ventures and Sequoia Capital, which invest heavily in blockchain projects like Bitcoin. 

These two well-known companies see the massive potential within this new startup. FTX looks to provide more opportunities for freelance workers and work towards a decentralised system by removing intermediaries such as agencies or platforms altogether.

They’ve raised $908M in funding in the past months, and their latest round was just a few days ago from Series B on July 20th led by 40 North Ventures and 20 other investors.

Partners

Alameda has always been a critical player in the secondary markets, so the team has strong connections with top exchanges, trading firms, and OTC desks. Their partnerships with USDC and TUSD are helping FTX to develop their relationships within these communities while still maintaining Alameda's stronghold on those who look to it as an integral part of their business strategy.

FTX has announced a strategic partnership with Binance, one of the most well-known exchanges in crypto. As part of this investment and partnership, FTX will be able to scale faster than ever before while announcing new initiatives that are sure to excite their community soon.

Key Points

Investing in a cryptocurrency can seem like a logical choice, but it is important to consider all factors before making a decision. Here are some things you might want to consider before purchasing FTT:

• FTX will buy FTT and burn the amount weekly starting at 10 pm HKT every Monday according to their schedule. There was a total of 268,368 ($7,490,000)  FTT burned in July 2021.

• FTX is quickly becoming the best exchange for derivatives trading. Although it has only been around a short time, FTX is a potential competitor with Binance as they offer low fees and offer many currencies on their platform.
• The exchange’s $900 million Series B funding round includes more than 60 investors, including Paradigm, Ribbit Capital and Sequoia. This is considered the biggest funding round in the industry.
• The FTX team comes from the leading Wall Street quant firms and giant tech companies such as Facebook, Google and Jane Street.

Conclusion

I hope you have gained all of the important information about FTT, including its features and highlights throughout this topic.