Overview of the FTX exchange and the FTT . token

• What is FTX exchange?
• Products of FTX
• Futures
• Spot
• IEO
• Leveraged Tokens
• Exciting prediction games
• Other unique products of FTX
• FTX US
• What is FTT?
• How is FTT created by FTX exchange?
• What is FTT used for?
• Basic information about FTT Token
• FTT . Allocation
• FTT . Release Schedule
• FTT transaction fee on FTX
• Project team
• Investors
• summary

What is FTX exchange?

FTX is one of the most popular exchanges in the Crypto market, built and developed by the investment fund Alameda Research . The birth of the FTX exchange helps to solve the problems that the futures exchange is facing, such as: The transaction processing system is overloaded when there are many transactions at the same time, the liquidity poor accounts, less diversified asset portfolio. 

Alameda Research is a crypto hedge fund and an important market maker on the FTX exchange. Within 1 year of its launch, Alameda Research's FTX exchange has reached a trading volume of up to 1 billion USD per day.

This is an exchange that has made a name in the Crypto market thanks to the addition of new features such as fractionalized stocks, large leverage, prediction markets, futures derivatives contracts. …

Products of FTX

FTX's goal is to become the leading derivatives exchange for both professional and novice traders. Therefore, from the very beginning, FTX's products often focused on derivative products, instead of the spot market like other exchanges.

Futures

Up to now, the futures market on FTX has more than 140 trading pairs, including periodic contracts (Margin) and perpetual contracts (Futures). The futures market is one of the most revenue generating segments for FTX. 

Although, on the cryptocurrency market, there are many exchanges that develop derivatives markets, FTX sets itself apart from other exchanges in two ways:

• High liquidity: FTX applies backstop liquidity, helping user accounts never go negative. Market maker Alameda Research has provided FTX with ample liquidity to implement that feature.
• Diversity of products: FTX supports users to trade many token pairs and indexes, fluctuations (BTC volitile…). Notably, apart from FTX, there are still almost no exchanges that support such products. 
• Although, FTX's goal is to develop for professional traders. However, with a simple and easy-to-use interface, it is still easy for amateur traders to use.

Spot

In addition to the derivatives market, the FTX exchange also supports spot trading with more than 50 crypto asset pairs.

IEO

IEOs are a way for exchanges that support potential blockchain projects to launch tokens. Currently, most exchanges have this product, it brings benefits to the exchange such as:

• Attract users, build a loyal customer file
• Create demand to buy and store the exchange's original coin

In addition, for CEX exchanges that have developed their own ecosystem like Binance on BSC, FTX on Solana, the IEO is also a place to help them develop the ecosystem. Therefore, the majority of IEOs on FTX today are projects on Solana.

Leveraged Tokens

This is a form of leveraged token that combines spot trading and margin trading. It makes it possible for us to make high profits in a short time without any risk related to liquidity. 

FTX is a pioneer exchange in the development of leveraged tokens. Currently, FTX is also the only one that provides leveraged tokens for many other projects.

Exciting prediction games

Prediction games are organized by FTX as a small event for investors to participate in entertainment and receive attractive rewards. One of the most popular events of FTX is the bet of two US presidents, Donald Trump and Joe Biden. 

FTX is the only centralized exchange that offers betting games and many users have made tens of millions of dollars from these simple games.

Other unique products of FTX

Not only providing basic products, FTX also has a number of other advanced products. While it does not generate too much revenue, these products represent the diversity of the FTX exchange:

Options Trading: FTX allows users to become options sellers and can set quote, strike price and time…

Stocks are tokenized: FTX listens and understands the needs of investors and understands they want to invest in stocks. Therefore, FTX has tokenized shares on the US stock exchange with the first stock code of Tesla to meet the needs of users. Currently, the FTX exchange supports trading of more than 47 tokenized stocks.

OTC Trading: Alameda Research is a market maker, providing liquidity for FTX. Therefore, OTC activity on FTX is also very active and generates a lot of revenue for FTX.

FTX US

The financial market in the United States has always been a place that many financial institutions and companies aspire to touch. During its development journey, FTX has expanded into the financial market in the US, however, FTX US has a relatively low trading volume, only ~2% compared to FTX exchange. 

On the other hand, not only FTX but many other centralized exchanges also want to touch this market. Because, expanding the market to the US will help financial companies have a clearer and more transparent legal basis. At the same time, help them reach a large customer and organization file in this country.

What is FTT?

FTT (FTX Token) is a native token of the FTX exchange as a utility token. FTT is an ERC-20 standard token built on top of the Ethereum blockchain. It is used as a means of payment for services and transaction fees on the FTX exchange.

How is FTT created by FTX exchange?

All FTX products will serve the purpose of generating revenue for the exchange. After that, a portion of the revenue will be put into the FTT.

Similar to other CEX exchanges, FTT's Tokenomics model design will also have a token burning mechanism. FTX will use a portion of the revenue to buy back FTT and burn it periodically with the goal of creating value for the native token and reducing the circulating supply of FTT outside the market. Currently, the revenue used to buy back FTT will come from 3 sources:

• 33.3% transaction fee on FTX (Spot, Futures...)
• 10% profit from insurance fund
• 3.5% other fee on FTX (OTC, Lending...)

In addition to buying back and burning tokens, FTT has many other use cases, creating the need to buy FTT, specifically as follows:

• Collateral: FTX allows users to cross-collateralize tokens and trading positions in the futures market.
• Transaction fee discount: Depending on the amount of FTT held by the user, a transaction fee discount will be received.
• Airdrop & IEO: FTT holders will be able to participate in special events, such as buying newly listed tokens.
• Staking: FTX encourages users to stake FTT to receive incentives such as free deposit of ERC-20 assets, participation in IEOs, reduced transaction fees, etc.

What is FTT used for?

FTT is the native token of the FTX exchange and it is widely applied in the ecosystem of the FTX exchange, specifically:

• FTT is used as collateral for futures market transactions
• FTT holders will receive a discount on trading fees on the FTX exchange
• When trading OTC will be discounted for FTT holders
• FTT is used to pay for Whitelabel on the FTX exchange
• FTT used in organizing IEO (if any)

Basic information about FTT Token

• Ticker: FTT
• Blockchain: Ethereum
• Token Type: Utility Token, Native Token
• Token Standard: ERC-20
• Total Traffic: 332.408,184 FTT
• Circulating Supply: 13,538,847 FTT

FTT . Allocation

FTT will be distributed into 8 parts with the following ratio:

• Company Token: 25%, equivalent to 87,500,000 FTT
• Liquidity Fund: 20%, equivalent to 70,000,000 FTT
• Team Token: 20%, equivalent to 70,000,000 FTT
• Fund Insurance: 5%, equivalent to 17,500,000 FTT
• Safety Fund: 5%, equivalent to 17,500,000 FTT
• Adviser Token: 5%, equivalent to 17,500,000 FTT
• Ecosystem Fund: 10%, equivalent to 35,000,000 FTT
• User Acquisition Fund: 10%, equivalent to 35,000,000 FTT

FTT . Release Schedule

The FTT release schedule is shown in detail in the illustration below.

FTT transaction fee on FTX

FTT is an ERC-20 standard token built on Ethereum. Therefore, when transferring FTT, you pay a fee to Ethereum miners.

In addition, when trading on FTX or any other exchange, you need to pay an additional transaction fee for that exchange, specifically as follows:

Project team

FTX exchange was founded by two main members, Sam Bankman-Fried and Gary Wang.

Sam Bankman-Fried is currently the CEO and Founder of the project. He used to work for Jane Street - a company specializing in transactions with a transaction volume of up to trillions of dollars on Wall Street. At the end of 2017, Sam founded the crypto exchange and investment fund Alameda Research.

Alameda Research is one of the largest cryptocurrency investment funds in the world. By 2019, FTX was born and behind this exchange is none other than Sam Bankman-Fried and Alameda Research.

Gary Wang used to be a software engineer at Google and was an intern at Facebook. He graduated from MIT - a prestigious American university, with a bachelor's degree in mathematics and computer science.

There are also some other developers such as Constance Wang, Nishad Singh, Can Sun, Dan Friedberg and Jen Chan. They are all experienced developers in programming and data coding.

Investors

In addition to Alameda Research, FTX investors also include Binance Labs, Coinbase Ventures , Pantera Capital, Multicoin Capital, etc.

summary

Above is the basic information about FTX exchange and FTT token. Up to now, FTX is the best derivatives exchange of all CEX exchanges. Although, FTX's age is still quite young, but the success that FTX has achieved can be compared to Binance - a leading exchange in the world.

In 2021, in the latest funding round, FTX raised $900 million, bringing the company's capitalization to $18 billion. Thereby, we can see that FTX has been proving its position in this potential market.

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