What is FTT?
FTT is the native utility token of the FTX crypto derivatives exchange. It is primarily used to reduce trading fees on the exchange and as collateral for futures positions.
FTT can also be staked in order to earn interest and get a chance to win NFTs.
The token's number of use cases increased as the exchange grew into a dominant player in the industry.
- FTT is the backbone of the FTX exchange.
- FTT is backed by Almeda Research, a leading company in the trading space.
- FTT has a variety of institutional-grade use cases.
- FTT is used for growth, to reduce trading fees on FTX, and as collateral for futures positions.
- FTX continues to expand its financial product offerings with the help of FTT.
Who created FTT?
The FTX exchange, which heavily relies on FTT, was launched on May 8, 2019. It was founded by Sam Bankman-Fried and Gary Wang.
Bankman-Fried, the CEO of FTX, studied physics and holds a bachelor's degree from the Massachusetts Institute of Technology.
The thirty-year-old billionaire co-founded Almeda Research with Gary Wang in 2017, after which the duo went on to develop the FTX exchange two years later.
Gary Wang is the CTO of FTX and holds the same position at Almeda Research.
Before teaming up with Bankman-Fried, Wang gained software engineering experience at Google and Facebook.
Wang has a bachelor's degree in mathematics and computer science from the Massachusetts Institute of Technology.
What is FTT?
FTT is an ERC-20 native utility token of the FTX exchange - an exchange which caters to institutional-grade users by offering industry-first derivatives, options, volatility products and leveraged tokens.
According to its whitepaper, the token is designed to be the backbone of the platform and increase the adoption as well as demand for FTX products.
At first, the token was offered as a reward for transactions, but as time went by, its usage spread across the ecosystem.
The token is now used to offer VIP discounts that depend on the number of tokens held and reward users who provide liquidity through futures positions trading with FTT.
FTT has a circulating supply of around 262,850,227 FTT and a total supply of 332,638,679 FTT, according to the FTX website.
The token distribution was done in a similar fashion to traditional stock offerings:
- Company Tokens: 25% (87,500,000 FTT).
- Liquidity Fund: 20% (70,000,000 FTT).
- Team Tokens: 20% (70,000,000 FTT).
- Fund Insurance: 5% (17,500,000 FTT).
- Safety Fund: 5% (17,500,000 FTT).
- Adviser Tokens: 5% (17,500,000 FTT).
- Ecosystem Fund: 10% (35,000,000 FTT).
- User Acquisition Fund: 10% (35,000,000 FTT).
How does FTT work?
The token's use is fairly straightforward and similar to the use of various other crypto exchange tokens but with its own unique twist.
You see, FTT operates on a model which facilitates a plethora of features that institutional-grade users require, including:
- Clawback prevention using a three-tiered liquidation model.
- Centralised collateral pool and universal stablecoin settlement.
- Innovative financial products such as volatility indices.
FTT also has a token burn/revenue share mechanism which includes token buybacks. The tokens bought through the mechanism are burned (permanently removed from circulation) at a later date. This process is comparable to processes such as Binance's token burning and others.
Lastly, it's good to mention that FTX provides white-label solutions for crypto institutions looking for deep liquidity, and the costs for these are in FTT.
FTX is able to do this as Almeda Research is one of the largest liquidity providers in crypto, helping companies in the industry grow.
How to buy FTT?
Now that we covered all the basics of FTT, it's time to talk about where this token can be bought.
Just like most popular tokens, FTT is available in the SwissBorg app and adding it to your portfolio requires just a few steps:
- Step 1: Download and install the SwissBorg app.
- Step 2: Set up your SwissBorg account. A detailed tutorial is available on the Opening an Account page of the SwissBorg Help Center .
- Step 3: Transfer funds , either fiat or crypto, into your SwissBorg account.
- Step 4: Find the Marketplace section of the SwissBorg app.
- Step 5: Search for the token by simply typing "FTT" into our search feature. You can find the feature by looking for a magnifying glass icon in the top-left corner of the screen.
- Step 6: Tap on "Deposit", pick the fiat or cryptocurrency you want to use for the purchase, enter the amount you wish to spend, and tap on "Next".
- Step 7: Lastly, tap on "Confirm exchange", and you are done.
The same steps can be followed for buying any other token in the SwissBorg app, making it super easy for you to grow your portfolio.
Putting it all together
FTT is part of what made FTX what it is today. Without it, this popular exchange would need a new way of functioning.
By having the tagline "built by traders, for traders", FTX promises a lot but also delivers on the promises with the help of FTT. So, it's safe to say that the experience acquired by the FTX founders while working for tech giants such as Google and Facebook definitely came in handy.
Like FTT? Get it today using SwissBorg!