FTX Token (FTT) is a utility token associated with the FTX exchange, a globally recognized platform that faced a collapse and bankruptcy declaration in November 2022. The FTT token offers exclusive benefits to traders, including discounts on trading fees and the opportunity to earn rewards through staking. It operates as an ERC-20 token on the Ethereum blockchain ecosystem.
FTX, founded by Sam Bankman-Fried and headquartered in the Bahamas, specialized in cryptocurrency derivatives trading. The platform facilitated various forms of digital asset trading, including spot trading, leveraged trading, binary options, and over-the-counter (OTC) trading.
Previously, the FTT token experienced significant growth, ranking among the top cryptocurrencies by market capitalization during the 2021 crypto bull run. However, it later faced a decline in rankings due to the challenges leading to FTX's bankruptcy declaration and withdrawal suspension in November 2022.
Since then, the FTT token has exhibited notable price volatility and a sharp decline. If you're considering trading FTT, exercise caution due to the uncertainties surrounding the FTX exchange.
Co-founded by CEO Sam Bankman-Fried in April 2019, the FTX exchange quickly gained prominence in the cryptocurrency world. It offered a diverse range of trading options, encompassing OTC (Over-the-Counter) trading, binary options, futures, and leveraged trading.
Gary Wang, a fellow MIT graduate and co-founder, brought extensive tech industry experience, having worked as a software engineer at tech giants Facebook and Google.
The FTT Coin, FTX's native cryptocurrency, debuted through three Initial Coin Offerings (ICOs) in August, September, and October 2019. These ICOs included private sale events and introduced a total initial supply of 350 million FTT tokens. Investors received the lion's share, with 69%, while the remaining 31% was distributed among the founders and allocated to support the FTX project.
However, in November 2022, FTX faced a severe crisis. The exchange halted withdrawals and new account creation, leading to a bankruptcy filing. The crisis stemmed from allegations of mishandling and misappropriation of customer funds. Additionally, concerning connections between FTX and Alameda Research came to light, ultimately resulting in the downfall of both entities.
The repercussions were significant, with the price of FTT plummeting and investor confidence in the broader crypto market eroded. Numerous countries suspended FTX's operations, and many cryptocurrency exchanges removed FTT trading pairs from their platforms.
In September 2023, FTX achieved a significant milestone by obtaining court approval for its strategic move to liquidate its cryptocurrency assets. This decision has been a significant step in addressing FTX's financial challenges.
The assets slated for liquidation encompass a diverse range of cryptocurrencies, such as Bitcoin (BTC), Solana (SOL), Ethereum (ETH), and more. This asset sale aims to generate the necessary funds to meet the exchange's financial obligations and liabilities.
FTX's ambitious liquidation plan, valued at an impressive $3.4 billion, has captured the attention of the crypto community. It entails selling a substantial volume of digital assets, signifying a significant shift in FTX's financial strategy.
To ensure the success of this endeavor, FTX has engaged the expertise of Galaxy Digital. This move underscores a comprehensive approach to managing and maximizing the value of its crypto holdings.
This development has generated considerable interest in the crypto world, and it's a situation worth monitoring as it unfolds.
FTT, the central token within the FTX ecosystem, served a pivotal role, offering a wide range of benefits and opportunities to users. The following use cases applied to the FTX token in the past, while it is currently only in circulation for trading as a crypto asset with no particular use case as of October 2023.
FTT holders who engaged in crypto trading on the FTX market enjoyed significant discounts on their trading fees. To unlock these discounts, users needed to maintain a minimum of $100 worth of FTT coins in their accounts.
Users holding a specified minimum quantity of FTT received rebates on all OTC trading orders executed on the FTX platform. Additionally, FTT holders could level up their trading accounts by accumulating FTT tokens.
FTT holders on FTX were eligible for weekly airdrops of specific tokens listed on the exchange. This provided traders with a unique and cost-effective means of diversifying their portfolios.
FTT served as collateral for futures trading on the FTX exchange. Furthermore, FTX had plans to extend the use of FTT as collateral for new services, including margin trading and Initial Exchange Offerings (IEOs).
Before the FTX exchange's unfortunate collapse, FTT held a prominent position as one of the largest cryptocurrencies by market capitalization. It was the utility token for a major cryptocurrency exchange, allowing users to trade FTT against other cryptocurrencies on KuCoin and other supported platforms.
FTX encouraged FTT staking, fostering community engagement. Stakers received rewards from generated fees, including higher referral fees, additional discounts, voting rights in polls, increased airdrops, daily free ERC-20 and ETH withdrawals, and tickets for IEOs hosted on the exchange.
FTX regularly used a portion of the trading fees collected to repurchase and burn FTT tokens. This strategic token burn aimed to create deflationary pressure and support the FTX Token price in the market.
While we cannot offer a reliable FTT price prediction over any duration owing to the highly volatile nature of the token, you could monitor the following factors to understand the price action in the FTX crypto:
Investor sentiment plays a significant role in cryptocurrency price movements. Positive news and developments can drive prices up, while negative news can lead to declines in the FTT/USDT price.
Speculative trading can lead to price volatility in FTX token. Traders may buy and sell FTT based on short-term price expectations, impacting the price of FTX token.