What Is FTX Token (FTT)?

FTX is a crypto derivatives exchange built to offer futures, leveraged tokens, and OTC trading. Derivatives are a financial contract between two or more parties that can trade on an exchange. Futures are the derivatives that make the parties obligated to transact an asset at the future date and price. Over-the-counter (OTC) is the process of how securities are traded through a broker-dealer network. These securities are traded directly without being listed on the exchange.

The mission of FTX is to solve the futures exchanges’ crippling flaws that are holding the space back and move the derivatives space towards becoming institutional-grade. According to the whitepaper summary, FTX wants to be one of the best crypto derivatives exchanges.

Furthermore, FTX is backed by Alameda Research, a ~$100 million AUM (assets under management) quantitative cryptocurrency trading firm. Assets under management sum up the market value of investments that an entity or person manages on behalf of clients.

FTX launched its own automated OTC RFQ system that scaled its volume to $30 million per day without much marketing. RFQ is a “request for quote” that offers institutional-sized access to trading groups, OTC desks, agency brokers, and other participants to make and source off-screen block liquidity in futures, crypto options, etc.

History of FTX (FTT)

FTX was launched in 2019. The whitepaper of FTX was last updated on June 25, 2019. The team of FTX comes from leading Wall Street quant firms and tech companies—Jane Street, Optiver, Susquehanna, Facebook, and Google.

Sam Bankman-Fried is the CEO of FTX and was a trader on Jane Street Capital’s international ETF desk. Gary Wang is the CTO and founder and was a software engineer at Google before FTX.

FTX Trading Ltd was formed in Antigua and Barbuda and is headquartered in the Bahamas.