FTX is a cryptocurrency derivatives exchange that began operations in 2019 and provides OTC trading, options, and futures trading. FTX was founded by some of the world's most prominent crypto traders to address the shortcomings of existing crypto futures exchanges, such as poor liquidity, delayed trading, and clawbacks, which occur when money are taken from traders to compensate the losses of other traders. The FTX crypto platform is created "by traders for traders," and although it is complex enough to support professional trading firms, it tries to be simple enough for basic use and everyday trading. FTX is located in Hong Kong.

FTT is the native FTX token. FTT currency is a utility token that may be used to reduce trading costs or as collateral for futures contracts. Investors may also stake FTT coins to earn interest and compete for NFTs.

History

The FTX Exchange was founded in May 2019 with the goal of providing a viable choice in the crypto world for innovative trading mechanisms along with enough liquidity and security. Sam Bankman-Fried and Gary Wang co-founded FTX. Both founders also hold senior positions at Alameda Research, a cryptocurrency token liquidity service. As a result of its strategic agreement with Alameda Research, FTX has received a significant amount of cash since its inception.

Now they have one of the most liquid orderbooks in the world. Recently, FTX futures traded at nearly 100 million USD each day, with FTX OTC trading another 30 million USD. Top industry participants have overwhelmingly supported them, reinforcing the need for a well-designed derivatives exchange. They intend to introduce options, exchange-traded tokens, loans, and spot margin trading to FTX in the future.

How does it work

The FTX Exchange is powered by its own native exchange token, FTT, which is crucial to the FTX ecosystem. The maximum quantity of FTT tokens is roughly 339 million and is based on the ERC-20 tokenization standard. FTT, like other FTX services, is not accessible on major exchanges for U.S. citizens. FTX has created techniques to make FTT more useful to FTX Exchange users. FTT token holders, for example, receive fee refunds on the FTX platform based on the amount of FTT they possess, with trading charge savings ranging from 3% to 60%. FTT holders additionally enjoy a 0.02% discount on FTX OTC pricing in proportion to their current FTT holdings.

Furthermore, FTX imposes an anti-inflation mechanism on the FTT token supply by burning a portion of it on a regular basis. To create deflationary pressure on FTT, FTX buys and burns FTT tokens at a rate equivalent to 33% of FTX market fees, 10% of net insurance fund additions, and 5% of fees earned by other areas of the FTX platform. Users of the FTX Exchange can also stake FTT tokens on the platform in order to receive higher referral bonuses, maker fee rebates, bonus votes in community governance (in addition to standard votes based on FTT held and trading volume), waived blockchain fees for certain withdrawals, and additional airdrop rewards.

Total supply and circulation

Maximum supply is set to 352,170,015. Total supply is 330,200,114, while circulating number of tokens is 134,330,778 tokens FTT.