FTX coin review: The token behind a game-changing crypto exchange
Whether you’re a crypto geek or just starting out, FTX coin is bound to impress you. The coin has shown promising growth figures so far, while the exchange it powers is changing what’s possible in the world of crypto trading. If you want to find out how and why, it does it you’re in the right place.
The value of FTX coin has shot up 886.129% in the past year — even after accounting for the May 2021 crypto crash.
Also known as the FTT token, developers built the coin specifically for the FTX exchange. Much like BNB on Binance, it’s an exchange token that allows you to make the most of the platform. But the FTX exchange offers something a little different from the rest: derivatives for the crypto realm. Let’s look into why you should care (and why some of you might prefer to pull back).
Is the FTT token a good investment?
As mentioned already, the FTT token rose 886.129% between July 2020 and July 2021, according to figures from CoinGecko). But that’s just the beginning — its value has also seen a 1752.73% increase since its launch in 2019.
Plus, its market cap rank (value of all mined coins) hovers around 40, putting it just below Algorand coin. This points to a reasonable level of popularity, especially considering the coin was only launched around two years ago.
While you need to look at more than just numbers to decide whether to invest in a new cryptocurrency, these figures are promising. If fellow exchange tokens like BNB are anything to go by, most investors expect these assets to have a place in the crypto world.
But it’s not all sunshine and rainbows — FTX coin is designed solely for the FTX exchange, which could limit its potential compared to more versatile cryptocurrencies.
So, what should you do? First, clue yourself up on what exactly the token is and how it works.
FTT token review
But before we even look at the exchange token itself, we need to examine the exchange it was built for.
How FTX works
FTX exchange is a crypto exchange, which is simple enough: a platform for trading cryptocurrencies. But more specifically, it’s a derivatives exchange, which isn’t quite so simple.
Derivatives are complex assets — they’re essentially contracts with a value that depends on the value of other assets. Aimed at short-term traders who want to take advantage of swings and dips, they benefit anyone who can successfully predict market movements. But, until recently, they weren’t really a mainstay of the crypto sphere.
The FTX exchange was launched back in May 2019 by Sam Bankman-Fried, the billionaire founder of crypto trading firm Alameda Research. Its native token followed a few months later.
FTX token is built on the Ethereum blockchain and has several uses and perks:
- Spot trading against other cryptocurrencies or currencies
- Waiving and decreasing fees
- Staking in return for more votes and rewards
- Receiving the privilege to make more crypto withdrawals
And this is just the beginning — there’s a high chance of FTX unveiling more benefits over time.
But what does this mean for you as an investor?
First, let’s look at some potential issues that come with investing in FTX coin.
Warren Buffet once called derivatives a “financial weapon of mass destruction” — allowing traders to profit from the collapse of certain assets can be a recipe for disaster.
Plus, crypto futures involve even greater risks. In a traditional futures market, an exchange can turn to larger financial institutions for economic support if they face significant losses — but this isn’t possible in crypto trading. What do they do instead?
We only have to rewind to 2018 for a perfect example. A trader took out a futures position of $400 million on OKEx exchange, resulting in a significant loss. The exchange recovered the funds by taking gains away from other traders.
Who’s to say the same thing won’t happen on FTX?
Another major caveat is that US investors currently can’t use the full range of services on FTX since it’s deemed to be too unregulated (although there’s now a dedicated platform with more limited services called FTX US).
You might be thinking that these issues concern the FTX exchange rather than FTX coin, but one directly derives its value from the other. It’s impossible to separate them completely.
Yet despite these drawbacks, FTX token has plenty going for it — there’s a reason it’s had such a strong growth pattern since launch.
You can’t use the FTX exchange without it, and despite the potential risks involved, this poses a uniquely positive opportunity for experienced traders.
The FTX exchange has a clear competitive advantage thanks to the vast array of crypto derivatives and assets you can trade there. These include:
- Futures contracts (agree to buy or sell at a future date)
- Spot trading (buy or sell over the short term to exploit price changes)
- Leverage trading (take out a loan to trade more than you have)
- MOVE contracts (speculate on whether a coin will increase or decrease in value)
- Prediction markets (trade event outcomes)
FTX is also making efforts to avoid the drawbacks outlined above through its liquidity provider program and insurance fund. Overall, it offers more products, greater flexibility, and good liquidity compared to other crypto exchanges. It’s beneficial for short-term traders, and even some institutional investors.
But should you join their ranks?
FTT token price
Before we jump straight into FTT token’s price history, it’s worth taking a moment to talk about exchange tokens. These work slightly differently from other cryptocurrencies because they have a genuine purpose — holding them isn’t just an investment, it will also give you perks within the exchange, such as reduced fees or increased voting rights.
This can help to achieve steady growth — other exchange coins like Binance Coin, KuCoin, and Huoboi have all been successful since their respective launches. It’s no guarantee that FTT will do the same, but given the inherent advantages of its derivatives market, it would be reasonable to assume a similar performance.
You should know by now that the value of FTT has increased 1752.73% since its launch and 886.129% between July 2020 and July 2021. But it hasn’t exactly enjoyed a linear growth trend.
The coin reached its all-time high of $63.12 in May 2021, but the crypto crash followed shortly after. Its value has since hovered between $22 and $32.
What’s coming next? Nobody can say for certain, and no clear trend has emerged for the future yet, but there are some signs of a recovery. Investing in a new cryptocurrency like FTT token is risky business — especially considering the apprehension around the derivatives market — but the exchange offers something new and very powerful. Go figure.
If you like what you’ve read so far, there’s probably just one question rolling off your tongue now: where to buy FTX token.
Buy FTX token with MyConstant loans
Like all cryptocurrencies, you can get your hands on the coin by buying it on an exchange then moving it to your FTT token wallet. You can either open this on FTX itself or an external platform, like our multi-cryptocurrency wallet.
But your options don’t end there.
- 24/7 customer service.
- Rates as low as 6.5%.
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- Instant matching.
- Store and borrow against over 70+ different cryptocurrencies.
Sounds interesting? Sign up for a free account today and start investing in FTX coin.
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