FTX token or FTT (FTT/USDT – Trade it here) is a token used on the international crypto derivatives exchange. FTX provides OTC trading, leveraged tokens, and futures. Derivatives are financial contracts that can be traded on an exchange between two or more parties. The derivatives known as futures obligate the parties to transact an asset at a future time and price. Through a network of broker-dealers, securities are traded over-the-counter (OTC). These securities are traded directly on the platform but not listed. In this article, we will discover the important things you need to know about FTX token and an instruction on how to buy FTT on MEXC.
The Mission of FTX
Futures exchanges currently have a number of grave problems that are holding the industry back. The goal of FTX is to find solutions to these issues and advance the derivatives market toward institutional-grade level. The introduction of FTX was in April, and its orderbooks are already some of the most liquid in the entire globe. Recently, FTX futures and FTX OTC have combined to transact more than $100 million in daily trading volume.
Although it is not an easy task, it have gotten resounding support from leading business figures who have reiterated the need for a well-thought-out derivatives exchange. They are holding a token raise for anyone who want to help them grow as soon as possible and cultivate a great community of supporters.
Use Cases of FTX
FTX provides series of services that fulfill investors’ needs, here are some examples of its use cases:
- Options. On FTX, you can choose the option you want and get a trading offer in as little as 10 seconds. Trades are on will, you don’t need to accept the offer if you do not wish to trade.
- Futures and perpetual futures. More than 80 cryptocurrencies, including cryptos that are not well-known can be traded as futures contracts on FTX. It also provides perpetual futures which don’t have expiration dates. Noted that only cryptos can achieve that since the price is live 24/7 365 days unlike stocks.
- Prediction markets. Traders can bet on actual events like the US presidential election on the FTX marketplace.
What exactly is FTT?
FTT is one of the products developed on the FTX exchange. It stores value, is tradable and can be used for making transactions. Besides that, the FTX exchange designed incentive schemes to reduce its circulating supply in order to increase the network effects and to support the value.
Benefits of FTT:
A reduction in trading fees is one of the main advantages of adopting FTT. With crypto futures, you receive tighter spreads in addition to lower fees. FTT can also be used by traders as collateral for future holdings. The insurance protection that comes with FTT might shield traders from clawback. When the market experiences high volatility, insurance delivers a net gain that gives traders a buffer to keep trading without incurring margin calls.
Additionally, FTT supports staking, a procedure that enables owners of FTT exchange tokens to validate a transaction. Numerous advantages come with staking FTT. For instance, traders can spin the non-fungible swag wheel to win a free NFT and receive further rebates.
Utilities of FTT Token
There’s increasing utility of FTT, see below for more detail:
- Token Burn. One third of the fees from FTX exchange will be used for rebuying FTT. This process will continue until 50% or more of all FTT are burned.
- Collateral. You can use FTT as the collateral for future positions, which increases the demand and utility for FTT. This scenario could is applicable to other trading activities such as margin trading.
- Trading Fee Discount. For users who hold certain amount of FTT for a designated time will be able to pay lower trading fees. Therefore, this may increase the demand of FTT.
- OTC rebates. Users may receive rebates from all OTC trading if they hold enough FTT on FTX.
- OTC burn. Depends on OTC volume and its revenue, there will be a repurchase and burning of FTT.
- Socialized Gains. FTX performs backtests and live simulations to see how FTX does during large market tumbles. To illustrate more, FTX increases the insurance fund massively thanks to the unique backstop liquidity provider program.
- White Label Solutions. There are some crypto institutions are interested in buying a white label version of FTX’s OTC and futures exchange and they can purchase the white label with FTT.
How to buy FTT token?
You can buy FTT on MEXC following the steps:
- Log in to your MEXC account and click [Trade]. Click on [Spot].
- Search “FTT” using the search bar to see the available trading pairs. Take FTT/USDT as an example.
- Scroll down and go to the [Spot] box. Enter the amount of FTT you want to buy. You can choose from opening a Limit order, a Market order, or a Stop-limit order. Take Market order as an example. Click [Buy FTT] to confirm your order. You will find the purchased tokens in your Spot Wallet.
History of FTX (FTT)
The establish of FTX was in Antigua and Barbuda, with the Bahamas serving as its home base, and launched in 2019. The most recently revised date of FTX Whitepaper was on September, 2022. Leading Wall Street quant firms and tech businesses, including Jane Street, Optiver, Susquehanna, Facebook, and Google, have contributed members to the FTX team. Sam Bankman-Fried, the CEO of FTX, previously worked as a trader on the global ETF desk at Jane Street Capital. Before starting FTX, founder and CTO Gary Wang worked as a software engineer at Google.
Recent Price and Performance of FTT
FTT reached the highest price (ATH) of $84.967 on September 9, 2021. The lowest price since the date of ATH was $21.023 on June 15, 2022.
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