Review on FTX Token by Saparov Meylis

FTX is primarily a cryptocurrency derivatives exchange. Currently, the market leader is BitMEX, which has provided more than $ 1 trillion in trading volume in the last year alone. But this popularity also has a downside - downtime, errors in order submission, failures. And it was this very fact that allowed FTX to break into the market at a time when traders were looking for alternatives. One of the biggest hurdles for any fledgling exchange is liquidity. If there is no liquidity, there is essentially nothing to attract users. FTX solved this problem from the outset by bringing in Alameda Research, one of the world's largest liquidity providers, to trade on the exchange. The distribution of liquidity from day one allowed FTX to innovate in other areas. One of these areas is the wide range of products offered by FTX.



FTX Token (FTT) is an ERC-20 utility token built on the Ethereum platform. It has some unique elements. Just like Binance's LEO and BNB, FTX redeems and burns tokens from the proceeds generated by the exchange. Currently, 33% of all fees earned by FTX are used to buy and burn FTT tokens.

The process behind buy and burn schemes is to drive up the price of FTT tokens by continually reducing supply. However, the concept of socialized profits is unique, in which a portion of the money added to the insurance fund of the exchanges will be used to buy back the FTT. Insurance Nutrition is something exclusive to derivatives exchanges and ensures proper liquidation of users on the exchange if traders do not have enough liquidity to close someone's position.

FTX Token also has a limited volume, i.e. produced in a certain quantity, and is not subject to inflation. Such a currency is called deflationary.



FTX Token (FTT) holders receive a standard trade fee reduction based on how much FTT they hold. The fee reduction applies to both live markets and OTC trading. FTT can also be used in conjunction with USD, stablecoins and BTC as collateral (to prevent liquidation) for exchange trading. The FTT token is also used for betting traders in FTX Battle Royale.



FTT cryptocurrency can be used as collateral for futures positions. This increases the utility and demand for FTT. The same is true for margin trading.