FTX Token

What Is FTX Token (FTT)?

The FTX cryptocurrency derivatives trading platform, which went live on May 8, 2019, uses FTT as its native cryptocurrency token.

The team behind FTX is made up of some of the biggest cryptocurrency traders in recent years who decided to launch their own platform after finding problems with the majority of popular crypto futures exchanges. According to FTX, it is unique because of features like universal stablecoin settlement, a centralized collateral pool, and clawback prevention. Sam Bankman-Fried established the centralized cryptocurrency exchange FTX in 2019. It is supported by important trading firms in the sector, such as Almeda Research, OTPP, Temasek, BlackRock, Coinbase Ventures, and Sequoia Capital. By 2022, there will be over a million registered users on the platform, and daily trading volume will be in the billions of dollars.

In terms of clawback prevention, socialized losses have taken a sizable chunk of customer funds on other derivative exchanges. By employing a three-tiered liquidation model, FTX lowers this.

The collateral is dispersed across various token wallets on existing crypto futures exchanges, which can be challenging for traders as it makes it difficult to liquidate positions. On the other hand, FTX derivatives only need a single universal margin wallet and are stablecoin-settled.