FTT to Fiat Converter

FTT: The Native Token of FTX

FTT is the native cryptocurrency of FTX, a centralized derivatives trading platform launched in May 2019. The exchange was founded by Sam Bankman-Fried and developed by a team of experienced traders who sought to address perceived shortcomings in existing crypto futures exchanges. FTX emphasizes features such as clawback prevention, a unified collateral pool, and stablecoin settlement.

### Key Features of FTX

- Clawback Prevention – Unlike some derivatives exchanges where customer funds may be subject to socialized losses, FTX employs a three-tiered liquidation model to mitigate this risk.
- Unified Collateral Pool – Traders can manage positions more efficiently with a single margin wallet, avoiding the fragmentation seen on other platforms.
- Leveraged Tokens – FTX offers leveraged tokens that allow traders to gain exposure to assets like Bitcoin, Ethereum, and others with built-in leverage, without requiring margin trading. These tokens follow the ERC-20 standard and can be traded on spot exchanges.

### FTT Token Utility

FTT was introduced as a reward mechanism for exchange transactions but has since expanded in functionality:

- Fee Discounts – Users holding FTT receive reduced trading fees, with higher discounts for larger holdings.
- Collateral & Liquidity Rewards – FTT can be used to secure futures positions and earn rewards for providing liquidity.
- Token Burns – FTX periodically buys back and burns FTT using a portion of trading fees (33%), reserve funds (10%), and other commissions (5%).
- Staking Benefits – Staking FTT provides perks such as fee waivers, bonus votes, and participation in promotions.
- Institutional Use – Institutions using FTX’s white-label services pay fees in FTT.

### Current Status

FTX filed for Chapter 11 bankruptcy protection in November 2022, and proceedings are ongoing. Users should exercise caution when interacting with FTT, as some functionalities may be affected.

FTT remains an integral part of the FTX ecosystem, offering utility in trading, staking, and fee discounts. However, its future depends on the resolution of FTX’s legal and financial restructuring.