FTX Token

What is FTX Token (FTT)?

FTX Token (FTT), is the native cryptocurrency associated with the FTX trading platform, which was launched on May 8, 2019. Specifically designed as an ERC-20 token, FTT plays a pivotal role in the FTX ecosystem, where it provides a number of features such as discounts for trading fees, staking benefits, and collaterals for leveraged positions. While the platform filed for bankruptcy in November 2022, FTT tokens are still traded on some exchanges. FTX initially aimed to improve upon the deficiencies of mainstream crypto futures exchanges. This encompassed clawback prevention and universal stablecoin settlements at its commencement, thus making it quite unique. Highly transacted FTT tokens primarily serve to allow leverage positions and return rewards for traders.

Key Features of FTX Token (FTT)

1. Clawback Prevention: Contributes to socialized loss reduction through an innovative three-tier liquidation model.

2. Universal Margin Wallet: Provides a seamless process for all collateral management with stablecoin-settled derivatives.

3. Leveraged Tokens: Allows a trader to open leveraged positions without the need for margin trading.

4. Token Burn Mechanism: FTT coins are repurchased and regularly burned to keep their value.

FTT Token Use Cases

• Fee Discounts: Fees are incurred at the level of trading for the users.

• Borrowed Tokens: For the composition and maintenance of leveraged positions.

• Rewards in Staking: Gives rewards similar to NFTs, airdrops, and bonus voting.

• Institutional Payments: Used for payment of the fees for listing and provides white-label services.

• Insurance Protection: Availability for all traders in the market under volatile conditions.

Why did FTX Go Bankrupt?

On November 11, 2022, FTX filed for Chapter 11 bankruptcy, followed by the resignation of its chief executive officer, Sam Bankman-Fried. In turn, the series of legal actions and criminal investigations led to the surfacing of the allegations of fraud, money laundering, and extreme fund mismanagement in the falling company.

As of December 2022, Bankman-Fried was extradited to the U.S., where he, along with other senior executives, was facing numerous lawsuits and criminal charges handed down by the U.S. Department of Justice (DOJ), Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC). The charges turned on the alleged misuse of billions of customer funds that financed luxury real estate, contributions to political campaigns, and high-risk investments through Alameda Research.

In the second trial in March 2024, Bankman-Fried was sentenced to 25 years in prison and ordered to pay an $11 billion restitution. Although he maintained his innocence, the jury convicted him based on evidence presented by former colleagues-friends-who had pleaded guilty to related charges.

Consequences of Falling Downward

Economic Disaster 

Declaring bankruptcy, FTX conflated itself with the misuse of funds leaving a vacuum in the cryptocurrency market:

The drop wiped off billions-of-dollar value from the crypto ecosystem.

Other exchanges like Crypto.com faced mass withdrawals, leading to layoffs and financial strains.

Crypto brokers such as Genesis Global, BlockFi, Celsius, and Voyager Digital either suspended operations or filed for bankruptcy due to however long relation with FTX.

Regulatory Crackdown

A wave of regulatory action followed the FTX scandal:

The SEC and CFTC proceeded to file against the executives of FTX and affiliated firms for unregistered securities sales and false claims about their financial stability.

Regulatory authorities, including the FTC and New York Attorney General (NYAG), also imposed fines on platforms with links related to FTX, which was more adding to the scrutiny across all crypto firms in general.

Loss of Trust 

The collapse of FTX has brought a dent in public trust sharply toward centralized exchanges .the majority of crypto users moved to DeFi or withdrew from the crypto altogether. The crisis has also poured in the calls for further tightening up of transparency and auditing.

Will FTX recover in the future?

The future of FTX is uncertain. Multiple parties have expressed interest in reviving the platform or creating a similar one; however, the feasibility of such an effort is questionable. Presently, the court-appointed CEO, John J. Ray III, is focused on the recovery of customer assets and resolution of claims through bankruptcy proceedings. It will depend on several factors, including regulatory approvals, market conditions, and rebuilding trust within the crypto community.

How Users Can Claim Their Funds from FTX

To recover funds from your FTX account, follow these steps via the FTX Customer Claims Portal:

1. Login

Log in using your FTX credentials or Google/Apple sign-in.

Enter the 6-digit verification code sent via email, SMS, or authenticator app.

2. Email Verification

Verify your email by clicking Confirm Email. Complete the verification using the link sent to your inbox (valid for 5 minutes).

3. Provide KYC Information

Click Begin KYC Process and submit details:

For Individuals: Name, address, and government-issued ID.

For Businesses: Tax identification number.

KYC is required to validate claims.

4. Balance Confirmations

View your account balance and transaction history (through November 11, 2022).

5. Proof of Claim Status

Check your claim status. KYC is required even if no proof of claim is filed.

6. Tax and Voting

Upload tax information through the portal and vote if eligible.

For detail information, go to the FTX Customer Claims Portal

Where to buy FTX Tokens (FTT)?

You can sell your FTX Tokens (FTT) on popular cryptocurrency exchanges like FTX Exchange, Binance, Bybit, AscendEX, and Huobi Global. These trading platforms allow FTT to be traded with fiat currencies, stablecoins, and other cryptocurrencies. Choose your exchanges wisely and check on their fees before trading.

How to buy FTX on Bybit:

• Create a Bybit account or log in already.
• With a credit or debit card, buy stablecoins or BTC.
• Trade these coins for FTT on Bybit Spot.

Supported wallets for storing FTX Tokens (FTT)

The following wallets can be used to store FTX Tokens (FTT) securely.

FTX Exchange Wallet: This is really convenient for trading purposes but less secure from hacking attacks.

Hot Wallets: Some wallets that can be used for instant accessibility and trading are like MetaMask, Coinbase Wallet, Exodus, or Atomic Wallet.

Cold wallets-for hardware wallets such as Ledger Nano X, Trezor Model T,or SafePal.

Trust Wallet is a decentralized wallet that supports millions of assets and blockchains.

MyEtherWallet (MEW): A trusted store for tokens under the ERC-20 category such as FTT.

FTX Tokenomics and Coin History

The FTX Token, or FTT, is the utility token that powers the FTX ecosystem. It's used for trading fee discounts, collateral for futures, and participation in tokenized stocks. Launched on July 31, 2019, at a listing price of $1.73, FTT has grown significantly, showing a 2.1x ROI.

FTT's path is one of a Seed Round in Q3 2019, $7.5 million raised with each token priced at $0.15 per coin. It was led by FBG Capital among several investors. Then it follows the Private Rounds 1 and 2: amounting to $2.6M and $1.96M raised on prices $0.4 and $0.7 respectively.

Key Funding rounds:

Series B - Sep 2021, -Raised $900M.

Series B-1, Fourth quarter of 2021: $420M.

Series C, First Quarter, 2022 -raised $400M.

With strategic token burns reducing the supply, FTT deflationary model and robust utility ensure long term value.