What is FTX Token?

FTX Token (FTT) is the native digital asset token of the digital asset trading platform FTX, which was launched on May 8, 2019. The FTT coin is an ERC-20 standard token that is utilized by ecosystem participants. The token was introduced by the platform as a reward for exchange transactions, but its functions have expanded over time. FTT is used in the creation of leveraged tokens on the platform, and users can avail VIP discounts in the form of FTT depending on the number of coins they own. The platform regularly buys back and burns its tokens to maintain its value.

How does FTX Token work?

FTX Token operates within the FTX ecosystem, a centralized digital asset exchange launched by Sam Bankman-Fried in 2019. FTX Token is used in various ways within this ecosystem. For instance, it is used in the creation of leveraged tokens on the platform. These leveraged tokens allow traders to put leveraged positions without the need to trade on margin. FTT is also used to reduce trading fees and to secure futures positions. Additionally, profits from market movements are distributed among the holders. Users can stake FTT to avail discounts, bonus votes, and blockchain fee waivers.

What are the potential use cases for FTX Token?

FTX Token has several potential use cases within the FTX ecosystem. One of the primary uses of FTT is in the creation of leveraged tokens on the platform. Users can also stake FTT to receive various advantages, including discounts, bonus votes, and blockchain fee waivers. Institutions and investors can purchase a white label version of FTX’s OTC portal and futures market, paying expenses in FTT tokens. Projects can pay listing fees with FTT when creating leveraged tokens. Additionally, FTT tokens are used to reduce trading fees and to secure futures positions.

What is the history of FTX Token?

FTX Token was founded by Sam Bankman-Fried and Gary Wang and launched on May 8, 2019. The team behind FTX comprises some of the crypto traders over the past few years who, having found issues with crypto futures exchanges, decided to launch their own platform. FTX differentiates itself due to such features as clawback prevention, a centralized collateral pool, and universal stablecoin settlement. A year after its founding, the platform introduced the exchange token called FTX Token or FTT. As of 2022, the platform has over a million registered members, and the daily trading volume is substantial.