FTX Token vs. Other Tokens
FTT and other
Exchange Tokens
Right off the bat, FTT differentiates itself from other exchange tokens with innovative products and strong backing from Alameda Research, the largest liquidity provider in the cryptocurrency space today.
Furthermore, FTX’s trading mechanisms are very difficult to replicate, making the FTX token a unique asset in the blockchain industry.
FTT and
Leveraged Tokens
Among the unique offerings of the FTX trading platform are the use of leveraged tokens. These tokens enable traders to enter into leveraged or short positions without needing to trade on margin.
For example, a trader who wishes to buy 3x short on Ethereum can simply buy a 3x short Ethereum leveraged token on FTX. These tokens are ERC-20 based, so they can be listed on virtually any spot exchange. Among the available leveraged tokens are BTC, ETH, and USDT.
Clawback Prevention
Accounts that go into bankruptcy trigger auto-deleveraging, socialized losses, and clawbacks. Because the FTX team has personally dealt with these challenges on other exchanges, they’ve made it a point to cut down such losses on their trading platform, putting the user first.
FTX is able to achieve this through a three-tiered liquidation strategy that significantly reduces the possibility of a clawback occurring. Our internal tests reveal that market movements of 40% in a span of 20 minutes do not result in clawbacks.
Stablecoin-Settled
Derivatives and Centralized Collateral Pool
Several futures exchanges have collateral distributed across several different tokens and margin wallets. This is a pain point for many traders because it can be very hard to rebalance and avoid liquidating their holdings.
FTX has a centralized collateral pool to address these issues, with derivatives that are stablecoin-settled. Also, only one universal margin wallet is needed, making things much easier for traders who choose to trade on FTX
USDT Futures
Given USDT’s historical volatility, many cryptocurrency firms are desperately looking for a way to hedge USDT deltas. FTX provides USDT futures to address this concern and fill the gaps in the market.
FTT Basics
Staking crypto has grown in popularity in recent years. Staking refers to the process of locking funds in a cryptocurrency wallet or smart contract to support the operations of a blockchain network or project. Stakers are rewarded in different ways for contributing their funds to the health and functionality of the protocol.
There are many different avenues for staking cryptocurrencies these days, but the most common method is through staking pools. Staking pools are groups of cryptocurrency holders who come together to pool their resources and increase their chances of being selected to validate blocks on a Proof-of-Stake (PoS) blockchain.
With many newer blockchain projects opting for Proof of Stake consensus mechanisms over the original Proof of Work models, staking crypto has become a novel way to earn passive income and rewards from digital assets.
| FTX (FTT) Token | Binance (BNB) | Huobi (HT) | Cronos (CRO) | |
|---|---|---|---|---|
| Current Price* | $47.50 | $436.38 | $9.42 | $0.4582 |
| Market Cap* | $6,507,837,886 | $71,999,540,872 | $1,465,339,833 | $11,559,274,648 |
| Max. Supply | 352,170,015 | 165,116,760 | 500,000,000 | 30,263,013,692 |
| 24-hr. Trading Volume* | $133,129,843 | $2,313,687,471 | $45,365,170 | $69,490,490 |
| Token Utility | Trading
Transaction Fees Purchasing NFTs Revenue Share Trading Fee Discount Collateral Socialized Gains Leveraged Token Listing Fees White Label Solutions Future Expansion |
Trading
Transaction fees & discounts on the Binance Exchange Investment in Stocks, ETFs, and others Loans and transfers Booking travel arrangements Entertainment (Virtual Gifts, Lottery Tickets, etc.) Credit card payments Payment processing |
Token Utility
Trading Trading Fee Discounts Access to New Cryptos Voting Rights |
Trading
Payments via Crypto.com Pay and VISA cards Access to financial services via Crypto.com Earn and Cronos dApps |
| Benefits |
Trading fee discount of up to 60% for FTT holders Increased referral rates for FTT holders that stake the token Maker fee rebates on top of fee discounts Stakers get a chance to win free swag NFTs by spinning the non-fungible swag wheel Bonus votes in polls on top of standard votes, based on trading volume and FTT held Increased airdrop rewards for FTT stakers Free ERC-20 and ETH withdrawals per day for stakers, plus waived blockchain fees Free tickets for IEOs hosted on the platform One-third (33%) of fees generated on FTX markets are reallocated for purchasing FTT; tokens used to purchase such are then burned |
Spot trading fee discount of up to 25% Margin trading fee discount of up to 25% Futures trading fee discount of up to 10% Increased commissions on referrals of up to 40% Exclusive token sale access on Binance Launchpad Staking incentive rebates for up to 5 years of membership |
Can be exchanged on any ERC-20 network Trading discounts for VIP status users Tokens are Apportioned to the Investor Protection Fund (for users victimized by schemes) Asset-creating projects can use HT to vote for assets to be listed on Huobi |
Staking CRO entitles holders to 10-14% APY Access to Crypto.com syndicate events for CRO stakers (Events allow users to buy cryptos at up to 50% off) Tiered discounts on trading fees for stakers Reservation of one premium metal Crypto.com Visa card Crypto wallet benefits Rebates on trading fees Referral program bonus |
*Note: Values as of 6 April 2022; For comparison purposes only. Content provided by www.coinmarketcap.com. This information is subject to change due to market conditions. Please check with your advisor before making any investment decisions.
FTT Summed Up
As you can see, each exchange has a different focus when it comes to its token. Some, like Binance, focus on transaction fees and discounts, while others, like Huobi, offer a suite of benefits, including voting rights and access to premium services. FTX focuses on providing discounts for users holding the token while also giving them various ways to trade and invest.
All in all, each exchange’s token offers a different utility depending on the user’s needs. FTT is relatively new, but it shows a lot of promise and has a variety of uses.
