FTX Exchange And FTX Token Overview

https://youtu.be/GdOnDQe8LjE

Some days ago, on July 20, 2021, to be precise, the FTX exchange raised $900M, which is the largest funding round in crypto history. The Series B round included more than 60 investors, including world-renowned VCs such as Paradigm, Ribbit Capital, and Sequoia. FTX was just launched in May 2019, and in just a little over 2 years, the exchange is now valued at $18B (WOW). This is quite astonishing.

More remarkable is the fact that the exchange has 1 million users and is averaging more than $10 billion of daily trading volume. FTX is currently rank 4th among the Top Cryptocurrency Derivatives Exchanges.

How did this company's revenues increase over tenfold this year and 75x since it closed its Series A funding round in the middle of 2020? How did this youthful exchange experience this tremendous growth into one of the world's leading crypto exchanges in less than 3 years?

(INTRO)

My name is Gemmy, and I will be revealing the secret in this video. Join me as I show you a bird’s eye view of what made the FTX exchange stand out among its peers. Before then, fasten your seat belt, take out your popcorn, wear your movie glasses, and let’s DO THIS!

Wait, please do not forget to like this video and subscribe to this channel.

You see, FTX is a Cryptocurrency Derivatives Exchange built by traders and designed to offer a powerful platform for professional trading firms, intermediate traders, and beginners. Lemme break that down into bits for you.

FTX is a cryptocurrency derivatives exchange. What does that even mean? Let’s go back to crypto101 and rekindle our memories.

A Cryptocurrency Exchange is a digital marketplace that enables buyers and sellers to trade cryptocurrencies or other digital assets for fiat money or other cryptocurrencies. FTX is a type of centralized exchange like Binance, Coinbase, and Kraken. They all serve as a middle man that facilitates transactions between parties who want to trade cryptocurrencies or their derivatives. The next logical thing to ask is: What then is a Derivative?

Derivatives are popular financial instruments that traders use as a means of speculation or as a way of hedging risks. These financial instruments are derived from an underlying asset like crypto, fiat currency, or commodities. Popular examples of Derivatives are Options Contracts and Future Contracts. Many of the crypto markets or exchanges FTX included are derivative markets. So this brings us to the next bit:

The exchange was built by traders and designed to offer a powerful platform for professional trading firms, intermediate traders, and beginners. How do we mean?

FTX was founded by Sam Bankman-Fried, who was once a trader on Jane Street Capital’s international ETF desk, and current CTO Gary Wang, who is a former Google software engineer. A trader working in a reputable firm joined forces with a former engineer from google. That’s a combo recipe for great innovations.

Now, this is where it gets interesting. Before founding FTX, in 2017, these intelligent pair cooked their first great innovation when they founded Alameda Research Ltd; Alameda is a leading quantitative trading and cryptocurrency liquidity provider. This Alameda now assists FTX in maintaining deep order books as well as 24/7 OTC services.

We are talking about the best of the best, traders and tech talents with decades of experience from Jane Street, Optiver, Susquehanna, Facebook, and Google; all joined forces to build the powerful FTX.

Due to the talented nature of persons at the heart of FTX, they could provide its users access to a range of innovative, cutting-edge trading products. For example, the exchange was the first to launch several unique and innovative trading products such as leveraged tokens and MOVE contracts that have helped to set FTX apart.

The team caters to both retail and institutional traders. It incorporates solid trading features such as low fees and tight spreads, in addition to an OTC desk, extensive customer service support, TradingView charts, and IOS and Android mobile apps.

Now, let’s dive into 3 FTX financial products that have attracted billions of volume in daily transactions. The first we would discuss is a popular derivative among many exchanges, and that is the Futures Contract.

Futures

A futures contract is a type of agreement to buy or sell an asset at a predefined price. FTX supports perpetual futures on more than 20 cryptocurrencies such as BTC, BNB, LINK, and so on. They also offer Index Futures, which allows you to trade several segments of the crypto market with much more ease. They include large-cap, mid-cap, and small-cap coins. You can also trade exchange tokens, privacy tokens, and regional baskets. There are oil contracts that expire to the spot price of WTI oil. This then brings us to the following product, the FTX leveraged Tokens.

FTX Leveraged Tokens

FTX was the first to launch this innovative product. These tokens provide users leveraged exposure to the cryptocurrency market without managing a leveraged position. There is no margin requirement from the user's FTX account balance to start trading leveraged coins.

Using FTX leveraged tokens can help a trader with risk management because the derivatives exchange automatically reinvests any trade profits back into the underlying asset being traded. Considering the 3x Long Dogecoin token as an example, this means that if Doge’s perpetual futures go up by 1%, then we are at a profit of 3%. So for any leveraged token position sitting on a profit, the tokens will automatically put on 3x leveraged positions to it. On the flip side, leveraged tokens will automatically reduce risk if the position is negative.

Another product that was first launched by any exchange is the FTX Move contract. Let’s discuss it briefly:

FTX Move Contracts

MOVE is a contract that allows users to trade market volatility. It represents the absolute value of the amount the price of a coin moves in US Dollars over a period such as the DAILY or Weekly. The direction of the trade is irrelevant in the trade. All that matters is the total dollar amount that moves in either direction.

There are other financial products FTX has to offer, such as Options, Spot, and Prediction Markets. All of these combined have contributed to the tremendous short-term growth of FTX.

The FTX exchange has its native token referred to as FTT.

This token gives benefits to users and holders, such as using it to pay less trading fees, using it as collateral for futures trading, using it as a means of receiving socialized gains on the FTX exchange. It can be held and traded on many exchanges such as Binance; currently, 1 FTX is traded at $27.72.

In summary, the journey of FTX to becoming a top cryptocurrency exchange is truly well deserved. Binance, the leading and largest crypto exchange, recognized its potential early on by investing a large sum in them. FTX is legit, offers security to users’ assets, offers a simple, easy to navigate, and intuitive user interface that has been integrated with the best charting tools and advanced trading features.

You most likely will not get it wrong if you choose FTX as your cryptocurrency exchange! Please tell me what you think about this amazing exchange with your comments below. And please do not forget to hit the like button, subscribe, and share with others if this video has been helpful. Thanks and see you later.