Overview | What is

What is FTX?

FTX Exchange is a leading cryptocurrency exchange specializing in providing Derivative products related to cryptocurrencies such as Spot trading, Futures contracts, options, leveraged tokens, and OTC.

Founded by Alameda Research, one of the world’s largest market makers and liquidity providers, FTX is an exchange built by investors and for themselves. FTX is committed to building the best derivatives market by:

• Solve difficult problems of cryptocurrency exchanges: system overload, revenue, lack of liquidity, poor quality products, etc.
• Developing new products to meet the growing demand of the market.
• Timely response to the community: FTX is designed to build a strong platform for professional investment firms and first-time users.

Who is the founder of the FTX exchange?

Sam Bankman-Fried is the founder of the cryptocurrency exchange FTX. He has a total net worth of $26.5 billion as of November 2021. Sam is the richest person in the world under the age of 30 that did not inherit any assets but built his own fortune from the cryptocurrency market.

Prior to founding FTX, Sam was an ETF trader at Jane Street Capital. He has traded many ETFs, futures, currencies, and even stocks. Besides, he also participated in the design of the company’s automated OTC trading system.

Sam Bankman-Fried is a hard worker with strict discipline. He spends most of the night at the FTX office and only really leaves when employees are “bored of my presence,” he said.

Bankman-Fried said he personally donated more than $5 million to a group supporting President Joe Biden’s campaign, making political spending newcomer one of the country’s biggest donors. President of the United States.

From 2010 to 2014, Sam Bankman-Fried attended the Massachusetts Institute of Technology. He graduated in 2014 with a bachelor’s degree in physics and became interested in finance. Then, he started his career at Jane Street Capital, which is dedicated to the trading of international ETFs.

What is the FTX exchange ecosystem?

The strength of FTX lies in the variety of derivative products. It offers the following trading products:

What is FTX Futures? FTX supports contract types such as Quarterly and Perpetual futures with popular cryptocurrencies like Bitcoin (BTC), Binance Coin (BNB), Ethereum (ETH), and Chainlink (LINK).

What are Leveraged tokens FTX? The FTX exchange offers up to 45 leveraged tokens with the suffix BULL and BEAR in the token name. These leveraged tokens are pegged to the base currency, so if the price of the base currency goes up or down, the leveraged token will fluctuate accordingly.

What is an FTX MOVE contract? The MOVE contract on the FTX exchange is also like a futures contract that expires according to the amount of BTC transferred in a certain period of time. The more volatile the Bitcoin price, the higher the value of the MOVE contract whether the price rises or falls.

What is OTC FTX? FTX offers an OTC portal on the website that allows users to get 24/7 instant OTC quotes a price for most major currencies.

FTT – FTX token: FTT token is a Native Token of the FTX exchange and the main purpose of FTT is around the ecosystem of the FTX exchange.

What is an FTX Option? A derivative contract that gives the holder the right, but not the obligation, to buy or sell at an actual future price. They can use the options offered by the exchange to protect their open positions against price fluctuations.

What is Spot Market FTX? Trades are generally instantaneous or take place over a short period of time without margin or collateral.

What is Prediction markets FTX? It is basically a derivative event, where the value of the derivative will almost perfectly reflect the probability of realizing the outcome.

What are the advantages and disadvantages of FTX exchange?

Advantages of FTX

• Trading products on FTX are diverse and modern, such as Perpetual futures, Volatility contracts, and crypto Indexes. Other innovative products are Token Leverage, and MOVE Contracts that make FTX become different.
• Meet the business needs of retailers and institutions with low transaction fees and OTC trading services, etc.
• FTX Exchange accepts you to fund your credit card account in fiat currencies like USD, EUR, AUD, GBP, and CAD.
• The maximum possible leverage is up to X101, which allows traders to maximize their profit potential even when the market is trending in favor of the position.
• Extended Customer Support: FTX supports and creates groups on Telegram to allow users to communicate with each other in different languages.

Disadvantages of FTX

• The user interface contains a lot of information that can be confusing and difficult for newcomers to sign up for an FTX account.
• If users don’t understand clearly how an account at FTX works, the high-leverage token will become risky.

What is the FTX history?

• Sam Bankman-Fried and Gary Wang founded FTX in May 2019. Before founding FTX, Bankman-Fried traded ETFs at Jane Street Capital, a quantitative financial trading firm.
• In August 2020, FTX acquired Blockfolio, which is a crypto portfolio tracking app, for $150 million.
• As of July 2021, FTX has raised $900 million at an $18 billion valuation from more than 60 investors including Softbank, Sequoia Capital, and others. The competitor Binance invested in the company in 2020 and divested in 2021.
• In September 2021, FTX moved its headquarters from Hong Kong to the Bahamas.
• On January 14, 2022, FTX announced a $2 billion Venture Capital fund called FTX Ventures.
• In January 2022, FTX raised $400 million in Series C funding at a valuation of $32 billion.
• On February 11, 2022, FTX.US announced that the company would soon begin trading in the United States.
• FTX is said to have established a gaming division in February 2022 to help video game developers understand more about the applications of cryptocurrencies, NFTs, and other blockchain-related features.

How does FTX go bankrupt?

From a cryptocurrency giant, FTX filed for bankruptcy within just a week, causing seismicity in the cryptocurrency market and negatively affecting many related projects.

• On November 2, Coindesk published the balance sheet of Alameda Research, an investment fund of FTX. The report showed that 40% of loans use FTT as collateral.
• On November 5, Binance liquidated 23 million FTT tokens, causing the FTT token price to plummet. FTX dealt with withdrawal pressure due to users’ concerns about the serious lack of liquidity of this platform.
• On November 8, Binance signed a non-binding agreement to acquire FTX and help cover the liquidity crunch. Besides, FTX suspended the processing of withdrawals on the platform.
• On November 10, Binance decided to cancel its acquisition of FTX after due diligence, causing FTT to set a new bottom at $2. After Houbi and Tron promised to compensate for users who can not withdraw their tokens on FTX, FTX allowed users to withdraw TRON tokens. Meanwhile, FTX. US resigned from Crypto Council for Innovation (CCI).
• On November 11, FTX declared bankruptcy for FTX.com, FTX. US, Alameda Research and more than 130 additional affiliated companies in the FTX network. Sam Bankman-Fried stepped down as CEO, handing over control of the company to Jay Ray III, a veteran wall street bankruptcy lawyer.
• On November 12, FTX officials confirmed potential hack on the bankrupt crypto exchange’s Telegram channel and warned users to delete FTX application and avoid its website.