Every day different cryptocurrencies are born under other names. Here we want to introduce you to one of these new cryptocurrencies, which has a huge name these days.
FTX token, as one of the most exciting tokens, has stood among the 100 top cryptocurrencies after one year of its born. FTT is the native Token of the FTX exchange and plays as a backbone within the ecosystem.
Some experts believe that FTT, having leverage trades capability, is too complex to understand. Let’s dive into this cryptocurrency.
What Is FTX Token?
Sam Bankman-Fried, Gary Wang, and Alameda Research established FTX as a crypto trading platform in 2019. This platform differs from conventional cryptocurrency derivatives because it allows leverage and trade futures, options trading, and perpetual contracts.
FTX is backed by Alameda Research, one of the biggest cryptocurrency trading firms and the biggest liquidity provider for crypto markets. Engineers behind the FTX platform are from MIT and Berkeley with years of experience working for giant firms like Google, Facebook. By the way, FTX Token has a partnership with some big firms like Circle, True USD, Paxos, and Galois Capital.
FTX system enjoys some options like layered security and advanced support systems to prevent clawback and allow you a secure buying, selling, and managing it.
Why Does FTX Burn FTT?
To increase the scarcity of the token and its value, FTX burns the tokens every Monday since July 2019. So, FTX repurchases and burns the tokens, including 33% of the FTX generated markets fees, 10% of the net plus to the insurance fund, and 5% of fees earned from other uses of the FTX platform.
FTX always buys back its FTT from its users to burn it. The burning process is affected by a few factors. The most considerable worth of FTT that has been burnt to date is over $6.462 million, which has been destroyed recently.
The total maximum supply of FTX Token is 335.00 Million tokens. It has a circulating supply of 139,132,501 FTT coins. The current collection of FTT in circulation is 139.13 Million tokens.
It stands at a market rank of 20 FTX and encompasses 0.24% of the total cryptocurrency market. You can trade the Token via 25 markets and 12 exchanges.
FTX Token allows traders to take leveraged or short positions. Leveraged tokens pave the way for traders to take the leveraged positions without margins. For example, when a trader needs a short bitcoin with three leverages, they can buy it using this FTX capability. These tokens are compatible with ERC-20 and are listed in every centralized exchange.
As one of these tokens’ products, future contracts are sent regularly on this platform, and traders can enjoy a high return, thanks to the leveraged transactions.
It is impossible to mine FTT tokens because FTX uses the Proof of stake mechanism to validate cryptocurrency transactions.
It is also derivative crypto. Derivatives are financial instruments that allow traders to bet on financial instrument prices, commodity prices, and foreign exchange rates. Traders can also use derivatives to use a small amount of investment to get more exposure to the market, multiplying both gains and losses.
FTX Token Uses
Trading uses of FTT are the most common cases, but you don’t need to use it to own and benefit from the Token.
1- It can be used for payments as traditional money via sites that accept it
2- It can be used in investments
3- It can be used to reduce trading fees between 3-60 percent
4- Traders can use FTT tokens as collateral against futures positions, and the Token can also be used to provide liquidity to the exchange in return for rewards.
Why Should I Trade FTT with Bitunivex?
The FTX token can be a promising investment – especially for FTX exchange users (it is not a buying recommendation). A few main factors will affect the FTT value. FTX platform’s function and the crypto market status as a whole will determine the future price movements of this Token. As FTX makes more and more money from various trading fees, the FTT price possibly will be raised significantly. On Bitunivex, as a global cryptocurrency exchange and wallet service provider, you can experience a smooth, fast, and secure buying and selling FTX Token no matter your aim of trading. Here you can buy your desired crypto with your local currency and trade across many crypto markets.
Maybe you require experience and technical knowledge on other international and Australian exchanges. However, we provide you with a simple trading process to help beginner traders. You can get a response to any question you might have in less than 3 minutes. How awesome!
How Do You Store Your FTX Token?
As mentioned above, because these tokens are ERC-20 compatible, traders can store and manage their Tokens on a wide range of wallets of both hardware and software. FTX Token is available for purchase on Bitunivex. You can access your account using our website and manage your wallet store on your desktop anytime. The FTX Token wallet is available for Windows, OSX, Ubuntu, and other Linux-based OS.