Summary

The FTX cryptocurrency derivatives exchange offers futures, OTC trading, and leveraged tokens.

In the time that we have been operating, the platform has exhibited impressive growth and liquidity. FTX has partnered with TUSD and USDC among others and is backed by Alameda Research, the largest liquidity provider in the cryptocurrency space.

Proven Track Record of Success

Since its launch in 2019, FTX has become one of the leading cryptocurrency exchanges worldwide, alongside Binance (BNB), Huobi (HT), and Coinbase (COIN). The FTT token has also risen steadily in the past few years to quickly become one of the fastest-growing cryptocurrencies.

Contributing to the success is the strong team behind FTX and their drive to enter a crowded space, disrupt the status quo and become a dominant player.

  • All-Star Team: The FTX team comes from leading Wall Street firms and tech companies, including Jane Street, Optiver, Susquehanna, Facebook, and Google.
  • Alameda Research: A ~$100 million AUM quantitative cryptocurrency trading firm and the leading liquidity provider in the space backing FTT.
  • OTC: FTX’s automated OTC RFQ system was able to weather the bear market and the competitive OTC landscape soon after its launch. FTX provided some of the tightest spreads in the industry, quickly scaling volume to $30 million per day, even pre-marketing.

FTX Token Features

Our team’s combined experience as some of the largest crypto futures traders introduced us to the many problems in top futures exchanges. After giving numerous feedback and writing countless whitepapers to help these exchanges improve, we decided the only way forward was by building our own platform to address these gaps.

FTX differentiates itself from other exchanges through the following:

  • Clawback Prevention: On other exchanges, large amounts of customer funds are claimed by socialized losses. FTX greatly reduces the likelihood of clawbacks by using a three-tiered liquidation model
  • Centralized Collateral Pool and Universal Stablecoin Settlement: Existing futures exchanges fragment collateral across margin wallets and many separate tokens, making it difficult for traders to rebalance and prevent the liquidation of their positions. To address these problems, derivatives on FTX are stablecoin-settled and only require one common margin wallet.
  • Leveraged Tokens: Users can utilize these tokens to trade without having to margin trade. Leveraged tokens are ERC-20 and can thus be listed on any spot exchange. We offer BTC, ETH, EOS, USDT, XRP, BNB, TRX, and LEO leveraged tokens, among others.
  • USDT Futures: Many large crypto firms are looking for a way to hedge USDT deltas owing to its historical volatility. USDT futures are game-changers in this regard and can provide what these firms need.

Why FTX Is Hard to Replicate

Alameda Research, which backs FTX, is a thought leader in the crypto trading industry. Alameda’s expertise is a defining factor in making FTX a difficult platform to match.

  • Liquidity: FTX is more liquid than other futures exchanges in the market. This is extremely difficult to replicate. No new exchanges will be able to do so, and the previous five years have shown that only one contract can be completed by most.
  • Domain Expertise: Those who designed FTX are experts in the field – they know what works and what doesn’t. From collateral to maintenance margin, product listing, and liquidation processes, users can rest assured that these have been redesigned by some of the heaviest users of the products and the brightest minds in the space.
  • Pioneering New Products: FTX is the first to launch leveraged tokens and USDT Futures amid the huge demand.

  • Fast Development Cycle: FTX leverages Alameda’s experienced, battle-tested tech team in building complex crypto trading systems even under time pressures. For this reason, FTX’s development cycle is much shorter, allowing us to roll out multiple large features in short periods.
  • Strong Partnerships: We are partnered with USDC and TUSD and have strong connections with top exchanges, trading firms, OTC desks, and more.

Revenue Model

Our revenue comes from exchange fees, leveraged token fees, OTC, listing fees, and other fees for FTX products.

User Acquisition and Growth

Through the following efforts, FTX ensures the continued growth of the platform and the acquisition of new users:

  • Conventional Marketing and Crypto Press Releases
  • FTX OTC portal
  • Stablecoin Fiat Gateway
  • Future Initiatives
  • Listing New Leveraged Tokens on FTX
  • Listing Leveraged Tokens on Other Exchanges

Token Utility

The FTX token (FTT) is the backbone of the FTX ecosystem and is used for:

  • Revenue Share: One-third of all FTX fees generated are used to repurchase FTT
  • Trading Fee Discount: FTT holders can enjoy lower trading fees on FTX
  • Collateral: FTT can also be used as collateral for futures positions, increasing the utility and demand for FTT.
  • Socialized Gains: Gains from our backstop liquidity fund are socialized among FTT holders
  • Leveraged Token Listing Fees: FTT can be used by projects that want to create leveraged tokens using their coin
  • White Label Solutions: Crypto institutions that wish to purchase white label versions of our OTC portal and futures exchange can do so in FTT
  • Future Expansion: FTT will continue to expand its use case portfolio as more derivative products are added to the platform

Users can also stake FTT, which has several benefits for them including:

  • Up to 6 IEO tickets
  • Free daily ETH/ERC20 withdrawals
  • Maker fee rebates
  • Airdrops increase the more you stake
  • Referral fees

Growth Potential