FTX crypto is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.. It was launched in April and already have among the world’s most liquid orderbooks. FTX futures have traded more than $100m per day . FTX is a centralized crypto exchange and its moto is “by traders, for traders” backed by significant trading companies in the industry.
The Bahamas-based company was co-founded by Sam Bankman-Fried and Gary Wang. FTX claims to be one of the biggest crypto exchange and the team hails from reputable Wall Street quant firms and technology companies such as Facebook and Google.
Facts about FTX crypto :-
- FTX was built with a lot of features to differentiate us from our competitors, but its greatest strength lies in the team behind it.
- FTX is backed by Alameda Research, a ~$100million AUM quantitative cryptocurrency trading firm.
- In 2018 they launched an automated OTC RFQ sysytem. In spite of the bear market and competitive OTC landscape, were able to quickly scale their volume to $30million per day without much marketing.
- FTX also built a world class portal, with an intuitive UI and API, and an easy to use settlement system.
- Over the past 1.5 years, it has been one of the largest traders in the futures market.
- FTX is incorporated in Antigua and Barbuda and headquartered in the Bahamas after moving from Hong Kong in September 2021
Current futures exchanges have frequent large clawbacks leading to losses in the millions of dollars due to poorly designed risk management systems.leading to losses in the millions of dollars due to poorly designed risk management systems. FTX significantly reduces the likelihood of clawbacks from ever occurring by using a three-tiered liquidation model.
Centralized Collateral Pool
The type of collateral required differs depending on what contract is being traded . Instead of posting collateral in multiple accounts and tokens, FTX coin uses a system similar to mature traditional futures markets today, whereby traders post collateral in a single currency. crypto ftx are stablecoin settled and share collateral in one universal margin wallet.
FTX derivatives are stablecoin settled and share collateral in one universal margin wallet. This means that traders can deposit stablecoins as collateral for all derivative products, and their PNL is settled in stablecoins. Stablecoins allow traders to get legitimate USD-based price exposure and settlement, without needing a bank account.
FTX futures are standard, rather than inverted. This means that they are truly BTC/USD futures and not USD/BTC futures. Thus a user’s USD profit & loss is simply the orderbook straightforwardly displays a number of BTC futures, and that closing a position just means selling off the number of BTC contracts you own.
Why FTX exchange is Unique ?
Unlike many exchanges and projects who are issuing a token raise, our exchange is already live and actually functional. It is more or less similar to ethereum blockchain after the ethereum merger .
- FTX is very liquid. It’s already more liquid than every other futures exchange in crypto; only the BitMEX BTC perpetual futures are more liquid than FTX.
- It was designed by people who actually have a knowledge about the product
- Alameda has spent thousands of hours understanding exactly how these work and how they could be altered to prevent liquidations and clawbacks.
- crypto FTX’s liquidation process is the best in the class
- It is the first exchange to offer USDT futures
- The counterparts to Leveraged Tokens in traditional markets are extremely popular.
How FTX earns ?
FTX exchange charges a 0.02% for maker fees and 0.07% for taker fees. To become a VIP one must trade over a certain volume and/or hold a certain number of FTT. There will be a different fee structures for new FTX products like options, spot exchange, and margin trading. There are no fees for deposit, withdrawal or futures settlement. The OTC portal on crypto FTX trades tens of millions of dollars per day and is quickly growing.
Where FTX is banned ?
The people of US cannot trade on the global platform. So for them a separate FTX US exchange is available for US customers. It has reduced functionality and very few crypto are listed.
The exchange doesn’t open corporate or individual accounts for clients located or registered in the United States of America, Crimea, Afghanistan, Syria, North Korea, or Antigua and Barbuda, Iran, Afghanistan, Syria, North Korea, or Antigua and Barbuda , Cuba ,and Sevastopol, Luhansk People’s Republic, Donetsk People’s Republic.
The platform does not register users from Ontario, Canada, and there may be potential limited restrictions in Hong Kong, Thailand, Malaysia, India and Canada. Brazil users are not permitted to use derivative products and all Japanese users are serviced on FTX Japan.