With slightly under 30,000 total addresses holding the token, FTX Token (FTT) is a popular cryptocurrency among traders. This token has proven valuable for traders all over the world in just over three years, growing to a market valuation of over $3,000,000,000 USD. Is this coin’s use durable? Will FTT improve trading efficiency or disappear? This page discusses the FTX token, how it works, and how it differs from other popular cryptocurrencies. This article will teach you all you need to know about this wonderful and promising token.
About FTX token (FTT)
The FTX Token (FTT) is a utility token that grants access to the features and services of the trading platform. It is also the preferred FTX ecosystem’s native token. It promotes usefulness in the FTX ecosystem by incentivizing users to hold and use the token. It claims to differentiate itself from other exchange utility tokens by offering unique functionalities. For example, clawback avoidance is critical to FTX and is not available on other exchanges. Clawbacks occur when an investor loses money as a result of the liquidation.
In order to give traders a mechanism to reduce trading costs, this token was developed. Users receive a discount on the fees levied when they pay for their trades using FTT. The amount of the discount increases as the person holds more FTT.
Other benefits that FTT holders can anticipate include improved referral rates, free daily ERC20/ETH withdrawals (up to 1000 per day), and a higher likelihood of airdrops. This FTX should be viewed as a tool to cut trading costs and get paid for using the platform of FTX.
FTT also has the advantage of being leveraged tokens. Users can avoid paying interest on their positions because they are no longer required to trade on margin. This is crucial because it enables you to trade with higher leverage without endangering the entirety of your account. These leveraged tokens can be kept in well-known Ethereum wallets like MetaMask because they are ERC20 compliant.
How it works
It primarily functions by saving holders money on trading costs. Currently, the token offers a 3.00% reduction on trading costs to token owners who have at least $100 worth of FTT. As more FTT is held in the trader’s account, these benefits rise. A tiered mechanism governs the FTX Token rewards. There are currently a total of 12 tiers. The top tier, “VIP 6,” requires a holding of $5,000,000.00. However, users receive a 60.00% discount on trading fees. The first six tiers are unnamed. It just goes to demonstrate how much the FTX Token may save a trader on fees, even if there are obviously lesser criteria for lower tiers.
The benefit of this tiered structure also includes savings of up to 0.02% on FTX OTC. OTC trading is a service that enables large-scale bitcoin trades without changing the market price. Using a more direct approach, this is accomplished. It is an excellent strategy to avoid slippage, which can occur when dealing with huge sums of money all at once. Although 0.02% may not seem like much, it can save a lot of money on significant trades.
The FTX Token comes with many other advantages, one of which is a collateral pool. In this arrangement, holders of FTT tokens have the option to place their tokens in a pool and then get interested in those tokens. The total amount of FTT that is contributed to the pool has an impact on the interest rates. The amount of FTT that is contributed to the pool will directly determine the degree to which the interest rate will climb.
