Remember when an early investor misspelled the word “hold” as “HODL” on a forum and started the biggest meme in the crypto world?
Ever since that happened, HODLing became a term for buying and holding assets to realize long-term gains.
FTX token (FTT) is growing to become one of the most popular choices amongst investors and HODLers who are looking to do exactly that. FTT is the official token of the cryptocurrency derivatives exchange FTX, and the backbone of the FTX ecosystem.
FTX Token features incentive schemes that benefit FTX users and token holders such as weekly SRM airdrops and trading fee discounts. It’s a deflationary token designed to grow in value over time and increase network effects. Users can stake it, use it as collateral, or simply HODL.
FTT is available on most popular cryptocurrency exchanges like FTX, Binance, Bitfinex, Huobi Global, and AscendEX Y.
In this article, we’ll dive into the benefits of holding FTT compared to other tokens.
What is holding crypto?
In traditional finances, you have concepts such as “buy and hold,” which reflect an investor’s tendency to focus on the long term and not sell regardless of market fluctuations. This is similar to HODLing, which is when an investor buys crypto, stocks, ETFs, or even real estate and holds the asset regardless of the fluctuations in the market. The only drawback is that an investor might miss out on the best time to sell their asset.
However, there can be benefits, including on taxes depending on the jurisdiction and how long the investments are held.
HODLing is not just a concept but an actual investment strategy that is used by investors in a variety of crypto and traditional assets.
HODLing vs. Staking
HODLing means purchasing an asset and waiting for its value to appreciate. This is a long-term strategy focused on bringing the best results and return from leveraged tokens.
While HODLing, users have full control over their assets, and getting started with this strategy is as simple as buying and owning a currency or token.
Staking, on the other hand, refers to depositing the crypto assets you own into a protocol. The main purpose behind staking is generating a high yield in the short term.
Stakers have to deposit their tokens inside a protocol to earn interest, which means they lose custody of those tokens. It’s typically considered a more short-term strategy. Ultimately, staking typically has the potential for a higher risk/higher reward than HODLing, depending on the protocol.
What are the benefits of holding FTT?
There are several benefits to holding FTT, including:
- Discounts in Trading Fees
- Up to 60% discounts on FTX trading fees.
- Up to 0.02% over-the-counter discounts, and the potential for FTX to pay the trader 0.003% of the fees when they stake 1M or more FTT. Staking 25 FTT allows users to get free maker fees.
- Token Burning and Revenue Sharing
- FTX will buy and burn FTT equal to one-third of all exchange fees, making it a deflationary token.
- Included in the buy and burn process are also 10% of all net additions to the insurance fund (backstop liquidity fund) and 5% of all the other fees on the platform.
- Weekly SRM Airdrops
- SRM is the Serum ecosystem token. It is natively based on the Solana blockchain and has an Ethereum ERC-20 token alternative.
- FTX will distribute 5% of its total supply of SRM to FTT holders. Airdrops occur every Monday after the buy and burn event. By holding more FTT, users can earn more SRM from their leveraged tokens.
- One percent of all net fees and donations go towards charity.
Holding FTT vs. Other Tokens Breakdown
We make it easy to see the benefits of holding FTX Token compared to holding other tokens that are out on the market.
FTX Token (FTT)
FTT is the main utility token of the crypto derivatives exchange FTX.
FTT provides users with massive trading fee discounts, maker fee rebates, referral fee rebates, and additional benefits. Users will be able to use FTT as collateral against futures on FTX and can also stake FTT on the FTX exchange. Staking gives users added benefits such as increased referral rebate rates, bonus votes, increased airdrop rewards, and more.
In 2021, the value of the FTT token increased by over 400% over a one-year period.
At the time of writing, the market capitalization of FTT is over $5 billion. This places its current price at around $36. It comes at a total token supply of 350,000,000.
ADA is the native token of the Cardano blockchain and is used to facilitate peer-to-peer (P2P) transactions. It’s an open-source blockchain backed by Proof-of-Stake (PoS), a consensus mechanism or protocol that takes into account the amount of stake (or value) held by the user to determine consensus.
Charles Hoskinson, one of the co-founders of Ethereum, founded Cardano. He did it with the goal of addressing Bitcoin and Ethereum’s scalability issues. Cardano supports smart contracts and dApps and sits at around $40 billion in market capitalization.
Stellar Lumens (XLM)
The Stellar network’s ultimate goal is to connect TradFi to the crypto world. Its native token XML is to increase financial inclusion by providing accessible, easy-to-use global payment systems. It allows for quick currency conversions between crypto and fiat currencies, which makes it a good choice for institutional and retail investors.
It’s worthwhile to note that Stellar has partnerships with tech giants such as IBM, Stripe, and Deloitte and is a partner of many financial institutions in Europe and Asia. Currently, the token’s market cap sits at $6 billion.
Litecoin, with its native currency LTC, is a fork of the Bitcoin blockchain. Litecoins work on the same underlying system as bitcoins, but they feature improved scalability and transaction speed.
Litecoin is also Atomic Swap compatible, which means they are easily exchangeable peer-to-peer between blockchains without an intermediary. Its native currency, LTC, currently has a market cap of $9 billion.
Polkadot is a cryptocurrency that leverages the Proof-of-Stake (PoS) mechanism to provide interoperability between different blockchains. It lets developers create blockchains from scratch while leaning on the security of DOT.
Polkadot supports three blockchains: relay, bridge, and parachain. The relay chain is the base network that enables connectivity to other blockchains. It processes over 1000 transactions every second.
DOT is the native token of Polkadot, and it currently has a market cap of $25 billion.
The blockchain industry and crypto market are in a liminal moment. The industry is patiently waiting for new regulatory frameworks from regions like the US, the UK, Japan, and Australia. With many utility tokens still existing in a legal gray area in many places, it’s unclear whether new US regulations will allow the FTX token, which is currently not available in the US and other jurisdictions.
Conclusion: Is HODLing For You?
Are you a current (or future) HODLer? HODLing is one of the easiest investment strategies and the best option for users who want to maintain custody of their valuable assets. If an investor is confident that they can handle more risk, they may go for a riskier option such as staking.
Whether you’re a HODLer or a staker, FTT provides unique features and advantages for investors. Register an account on the FTX exchange today, and start taking advantage of the benefits of FTT.