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  • Matteo Poole

FTX Token - FTT

Updated: Jul 20

Market Discovery of the most influential markets in the cryptocurrency world.


Market Discovery Ftx Token

What is FTX Token (FTT) and how does it work?


FTX is a Cryptocurrencies Derivatives Exchange that was initially launched in May of 2019 and ranks among the top exchanges by trading volume, averaging around $5 billion daily and having over one million active users. The exchange has its own native crypto token, FTT, used for trading fees, as collateral for futures positions, getting discounts, receiving OTC rebates, and other features.


The team behind the project featured some of the biggest traders in the industry. They decided to launch a mainstream trading platform to rival other popular ones in the sector. They hoped to stand out with features such as clawback prevention, universal stablecoin settlements, and a centralized collateral pool.




On other exchanges, regarding clawback prevention, customer funds tend to be covered by socialized losses. On FTX, this is reduced by using a three-tiered liquidation model. Similarly, because FTX derivatives are stablecoin-settled and only require one universal margin wallet, the complexity of liquidating funds spread across separate token wallets is simplified.


Additionally, traders can add leverage from 3x to 20x to their positions using the FTT token without the need to trade on margin. This allows traders to short coins by buying a short position. Therefore, FTT is an ERC-20 token and can be transferred and traded via the Ethereum blockchain. Some popular coins listed on the FTX exchange for trading are XRP, BNB, TRX, BTC, ETH, EOS, USDT, and other leveraged tokens.


FTX Token is unique because it’s backed by Almeda Research, one of the leading crypto companies and its largest liquidity provider. In addition, professionals in the industry have designed the platform with a simple and intuitive design. The aim is to attract customers with services ranging from collateral to maintenance margin, liquidation processes, and product listing. The company is also focused on development cycles, allowing them to deploy crypto trading systems at a competitive pace.

 

Coin Analysis

Last update 18/7/2022

FTX (FTT) Token was initially listed on its own FTX exchange and was not supported by others at its launch. However, later in 2019, other mainstream exchanges started supporting the coin for trading, and Binance ended up listing it in December, where it opened trading at around $1.95.


Shortly after its listing, FTT crypto started growing in price, with a gradual price increase, reaching around $4. After the slow and gradual start, in December of 2020, FTT token price exploded, going on an exponential bull run, reaching $36 initially and then an all-time high of $60 by May 2021, growing over 13.5x times from its previous price.


FTT/USDT weekly candels chart
FTT/USDT weekly candels chart

This move would be followed by a substantial drop that saw prices return to around $25, a 50% drop. However, this didn’t last long, and in the following weeks, prices were back above all-time highs, reaching a new level around $73.


This remarkable run made FTT crypto one of the best-performing coins of the year. However, like the rest of the market, the FTT token started declining towards the end of 2021, falling below its $60 support level and consequently stabilizing around $47. Unfortunately, this move was followed by a further price drop that saw FTT price find new lower support around $25, where prices currently stand.


With a lot of market uncertainty, it’s still unclear whether FTT has found its bottom, but it appears to have done so, with prices holding the support level for several weeks. If FTT bounces upwards and moves back towards $36, a trend reversal has likely occurred, and the bear market is over.


FTT is available for trading on BmyBit.com dApp.


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