Crypto Spotlight: FTT
We’ve recently added FTT (FTX Token) to the Wirex app. Like UMA, FTT also comes all the way from Wall Street! FTT abolishes clawbacks and offers a range of other great features.
What is FTT?
FTT is a cryptocurrency on the FTX exchange and was created to increase network effects and demand for the token, while also decreasing its circulating supply.
Who created FTT?
FTT was created by Sam Bankman-Fried in 2019.
What does it do?
FTT offers a wide variety of services. Most notably, it addresses a problem in frequent clawbacks in exchanges, which has previously resulted in significant losses. It achieves this by using a three-tiered liquidation model:
- Close down positions with rate-limited liquidation orders in the market
- Use a backstop liquidity provider program which steps in to help accounts at high risk of bankruptcy
- Influence the insurance fund to prevent losses
It also offers other key features such as discounted trading fees, token burns and OTC rebates.
What makes it unique?
FTT is unique for its wide variety of utility, which is likely to keep demand for the token high.