As of today, I believe that most of us are already familiar with the concept of Cryptocurrency. However, for those of you who don’t know what virtual currency is. Allow me a chance to explain. Crypto is a virtual asset that can be used to fulfill the basic purposes of physical money, the purchase and sale of goods and services but with a little twist, that it can only be done over the internet. Virtual currencies are a lot faster and convenient way of performing such tasks and are extremely secure, all thanks to cryptography.
Now, some of you might be wondering as to where can this currency be stored in order to use it in the future? Cryptocurrency can be stored in digital wallets on your phones or laptops and can even be used for the purposes of trade and exchange with other currencies with the help of crypto exchanges throughout the world. Apart from this, it is also worth mentioning that this virtual currency of yours uses blockchain technology in order to function. Wondering what a blockchain is? Let me explain. Blockchain technology is something that is responsible for verifying and recording transactions over various computer networks.
Around ten years ago, when the concept of virtual currencies was first introduced, it would have been very difficult to come around the fact that it will be the future of payment systems all around the globe and, seeing the popularity and the attention it received from huge business tycoons and potential investors from all around, shows that it is moving in the right direction which it intended to from the very beginning. As of today, we have numerous cryptocurrencies available in crypto exchanges to invest your money in. Talking of currencies, some of the currencies that are available today include Dogecoin, Baby Doge, Cardano, Binance Coin, Polygon, Wifedoge, and the industry-leading Bitcoin of course to name just a few popular ones.
It is very important for you to understand that the crypto marketplace is highly volatile and uncertain, which makes it very risky to invest. The price fluctuations are so high that you can either be a millionaire overnight or end up being bankrupt! Now that you have a basic understanding of the concept of cryptocurrencies, it will be easier for you to understand what we are going to talk about next!
Today with us we have the newest addition to the lot, FTX Token. To know more, I suggest you read further.
Everything to know about FTX Token (FTT)
FTX is nothing but a crypto derivatives trading platform, launched nearly two years ago on May 8, 2019. Whereas, FTT is the native currency token for FTX. FTT and FTX, both were founded by Gary Wang along with Sm Bankman-Fried who is currently the chief operating officer and co-founder at FTX. Furthermore, as mentioned, FTX is a virtual currency derivatives exchange focusing on building a platform that is intuitive enough for first-time users and a platform powerful enough for professional trading firms worldwide.
Not just that, FTX is backed by a digital currency liquidity provider, Alameda Research. Alameda research is a firm that deals in quantitative trading and manages over a billion dollars in virtual assets. Talking about FTT, with the help of the token you are eligible to gain socialized funds in regards to insurance, pay fewer trading fees on FTX, use it for futures trading by treating it as collateral and lastly, you can burn and buy fees on a weekly basis. Also, the FTT token can be staked in order to earn interest and get a chance to win NFTs.
The team behind FTX consists of some of the most brilliant minds in the crypto industry which were at some time one of the largest traders over the past few years, who decided to launch their own platform after finding some issues in the most mainstream virtual currency exchanges in the marketplace. Also, FTX claims that the platform stands out from all the others in the industry due to some features including a collateral pool that is centralized, clawback prevention along with stablecoin settlement which is universal. For better understanding, Clawback is when another person’s bankruptcy is covered with the help of money taken from several investors.
Talking about clawback prevention, in regards to it, a notable amount of funds from the users on other derivative exchanges as a matter of fact have been taken by socialized losses. This is reduced with the help of a three-tiered liquidation model that FTX uses. Apart from this, on futures crypto exchanges that are already existing, the collateral is broken up across various separate token wallets, which can be troublesome for many traders as it stops positions from getting liquidated. On the other hand, if we talk about FTX, its derivatives are settled stablecoins and thus requires only one universal margin wallet.
On a similar note, another feature of the platform is Leveraged tokens. For those of you thinking what are Leveraged tokens? Let me make it easier for you. Leveraged tokens allow traders to lay down leveraged positions that too without a need of trading on margins. For instance, if a trader requires a short Bitcoin with three times leverage, they can easily purchase a three times short leveraged bitcoin token on FTX. Not just that, these tokens are compatible with ERC-20 and can be easily listed on any of the spot exchanges. Talking about leveraged tokens offered by FTX, it offers EOS, XRP, ETH, BNB, TRX, LEO, and USDT leveraged tokens. However, the platform’s U.S site, FTX.US has only a limited selection of services available because of the restrictions implemented on trading retail derivatives.
Talking about derivatives so much, some of you might be thinking as to what they are? Derivatives are advanced trading products that include trading contracts in order to purchase or sell a product without having to own the underlying product itself. They enable traders to theoretically analyze whether there will be a rise or fall in the market.
Reading so far, some of you must be thinking as to what makes FTX Token special? As mentioned, FTX is supported by Almeda Research, which is known to be one of the largest liquidity providers and one of the leading firms in Cryptocurrency trading. Having said that, it is no surprise that FTX is a product that is designed by people having great expertise in the industry. They provide users with several services including the process from collateral and maintenance margins to product listings and liquidation processes. FTX also says that they are aimed at rapid development cycles, thus, allowing them to introduce trading systems for virtual currencies at a much competitive pace.
FTX: recent updates
On July 20th this year, FTX made an announcement to close a 900 million dollar round of fundraising, valuing the platform at nearly eighteen billion dollars. In the company’s fundraising, 60 investors participated among which there were a lot of big names, and FTX says that this was one of the biggest raises for any Cryptocurrency firm. However, a week later on July 27th, the company announced the launch of their climate program which would help FTX in reaching the aim of becoming carbon neutral along with funding the climate research of course.
On 5th August, FTX made a deal with a popular gaming startup, Yield Guild Games. The company gave naming rights for FTX on a scholarship to aid 137 players started in Axie Infinity(AXS), a popular crypto game, from developing countries all around the world. Five days later, on 10th August, as a long-term relationship, Shark Tank’s Mr wonderful and Entrepreneur, Kevin O’Leary agreed to become a spokesperson for FTX, praising the company’s rigorous step towards compliance.
Furthermore, on August 13, FTX made a commitment of funding for a three-year period to a non-profit known as Brink Technology that gives support grants to the developers of Bitcoin(BTC). On August 31 when FTX acquired a U.S.-licensed derivatives company know as LedgerX that serves both institutional as well as retail investors, thus making it feasible for FTX to make available U.S. customers with crypto derivatives. The latest announcement was made yesterday on 6th August, when FTX announced the launch of a marketplace enabling NFT owners and creators to trade their NFTs cross-chain with the help of Solana and Ethereum, in the near future.
Investing in FTX
As of today, the price of FTX Is nearly 82.15 US dollars with a twenty-four-hour trading volume of about 2,618,873,805 US dollars. In just a day’s time, the FTX Token has gone up by 31.03 percent. With a market cap of 7,750,983,337 US dollars, the token is placed at 26th position in the CoinMarketCap rankings. In a week’s time, the currency has gone up by 73.5 percent and as a matter of fact, the token is below its all-time high of 82.22 dollars by almost 2.31 percent. Also, it is worth mentioning that FTX has a circulating supply of 94,346,958 FTT coins with a maximum lifetime supply of 352,170,015 FTT coins.
Reading so far, you must be wondering whether or not you should invest in FTX? With so many virtual currencies to choose from in the marketplace, it is crucial to pick one that is likely to do well in the long term as it is a highly volatile market and fluctuations in prices are almost instant. Talking about FTX, seeing its vision and performance so far, it is likely to give you good returns in the long run, which plays out well for FTT. The platform has a clear business plan and has great minds behind it to solve the common problems faced today. Not to mentions that, unlike many other cryptocurrencies, FTT has a very straightforward use case. Also, the recent deal with LedgerX could facilitate FTX’s growth even further and differentiate the platform from already established exchanges, especially in America.
But like every coin has two sides, so does FTX. Though FTX is strong on an international level, its customer base is somewhat limited in the U.S. due to the restrictions on its product offerings. Also, as a matter of fact, FTT is also not easy to purchase in the United States. The bottom line is that if you are already an international customer of FTX, you can have several advantages of owning FTT but if not and planning on investing in FTT, regulatory changes are a huge threat.
If you are wondering where can you buy FTX tokens? Let me help you with that. Currently, FTX, Binance, BiONE, Huobi Global, and ZT are some of the popular crypto exchanges that have the FTX token listed.
In conclusion, it is essential for you to understand that, like any other online currency, FTX too has its own risks and you should only put in your money if you are willing to take those risks and bear any losses if at all necessary. It is advised that you should never invest more than what you can afford to lose.
What are your thoughts on FTX? Do let us know in the comments below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!
Also read: Wifedoge: Everything you need to know