{"id":"ftt","version":1,"language":"en","title":"FTT","hidden":false,"content":"**FTT** is the native token of [FTX](https://iq.wiki/wiki/ftx), a cryptocurrency exchange backed by [Alameda Research](https://iq.wiki/wiki/alameda-research). FTT was used to reduce trading fees on the exchange, also served as collateral against futures positions, or could be staked to earn interest and get a chance to win [NFTs](https://iq.wiki/wiki/non-fungible-token-nft) by its holders.[\\[3\\]](#cite-id-3zjn6j58mfv)  \n  \nIn November 2022, following the collapse of [FTX](https://iq.wiki/wiki/ftx) and the exchange filing for bankruptcy, the FTT token saw a decrease of 97.6% from its previous all-time high of $84.18 per token which it saw on September 9, 2021. [\\[4\\]](#cite-id-ciuqd04u2dn)$$widget0 [YOUTUBE@VID](VbGCUuZHSoA)$$  \n  \n# Overview  \n  \nFTT was issued by [FTX](https://iq.wiki/wiki/ftx), the crypto exchange founded by [Sam Bankman-Fried](https://iq.wiki/wiki/sam-bankman-fried) and [Gary Wang](https://iq.wiki/wiki/gary-wang) in May 2019. A year after its launch, the exchange introduced the FTT which operated on the [Ethereum](https://iq.wiki/wiki/ethereum), [Solana](https://iq.wiki/wiki/solana), and [Binance Chain](https://iq.wiki/wiki/binance-smart-chain) [blockchains](https://iq.wiki/wiki/blockchain).  \n  \nFTT was made to give holders FTX-based rebates when they traded on the exchange or leveraged FTX OTC. Anyone holding between $1 million to $5 million worth of FTT could get automatically upgraded to a VIP status if they used both services. As of May 2022, FTX offered a 3% trading discount to holders of more than $100 in FTT. For those who own more than $5 million worth of the token, these discounts increased to 60%.[\\[7\\]](#cite-id-zzmtobshdh)  \n  \nFTT launched with a total supply of 350 million tokens.  \n  \n## Token Allocation  \n  \n| Allocated To | 100% |  \n| ------------ | ---- |  \n| Backstop Fund | 5% |  \n| Safety Fund | 5% |  \n| FTT Liquidity Fund | 20% |  \n| Team Tokens | 20% |  \n| Adviser Tokens | 5% |  \n| Company Tokens | 25% |  \n| Ecosystem Fund | 10% |  \n| User Acquisition Fund | 10%[\\[6\\]](#cite-id-cw53f9gvnel) |  \n  \n# Utility  \n  \n## Token Burn  \n  \nAt the platform’s inception, it was decided that 33% of all trading fee revenue generated on FTX would be dedicated to the FTX Token Burn. As FTX grew and more fees were generated, the amount of FTT burned increased until half of the original supply of 350 million FTT is destroyed.[\\[14\\]](#cite-id-0pwotih66d6n)  \n  \n## Collateral  \n  \nThe FTT token was used as a means of collateral for futures positions and margin trading.[\\[15\\]](#cite-id-g3agm9ufm8g)  \n  \n## Discount on Trading Fees  \n  \nHolders of the FTT token were able to get discounts on FTX trading fees, increased commissions on referrals, and earned rewards.[\\[16\\]](#cite-id-0pwotih66d6n)  \n  \n## OTC rebates and Burn  \n  \nTraders who hold enough FTT received rebates from all of their OTC trading on FTX. There was also a repurchase and burning of FTT based on OTC volumes and revenue from the [FTX](https://iq.wiki/wiki/ftx) OTC portal, which is powered by [Alameda Research](https://iq.wiki/wiki/alameda-research).  \n  \n## Socialized Gains  \n  \nFTX had an insurance fund that was to be used in case of large market volatility to protect its trader's funds. Therefore, in the case of a large increase in the insurance fund, FTT holders would receive a pro-rata bonus on their FTT holdings from the insurance fund.[\\[11\\]](#cite-id-fnndz4kw9mq)[\\[12\\]](#cite-id-5rqjxzoievw)  \n  \n# Burning  \n  \n## Buy & Burn FTT  \n  \nFor the platform to keep its deflationary nature, [FTX](https://iq.wiki/wiki/ftx) implemented a burn mechanism. FTX announced it would buy and burn FTT equal to one-third of all exchange fees, which includes 33% of fees generated on FTX markets, 10% of net additions to the backstop fund (Socialized Gains), and 5% of fees earned from other uses of the [FTX](https://iq.wiki/wiki/ftx) platform. All fees burnt excluded promotional discounts, payment processor fees, referral fees, and third-party costs associated with such revenue.[\\[5\\]](#cite-id-fluu5mpialg)  \n  \nAs of November 16, 2022, FTX has burnt a total of 21,104,887 FTT out of the circulating supply of 328,895,112 FTT.  \n  \n# Staking  \n  \nFTX also offered its users the opportunity to stake their [FTT](https://iq.wiki/wiki/ftt) tokens and earn. Unstaking FTT took 14 days. Stakers were allowed to pay a fee to unstake their FTT immediately. Staking FTT offered its users the following benefits:  \n  \n* Higher referral rates. Referrers who staked FTT received a higher income from their referees’ fees.  \n* Maker fee rebates. These users accessed maker fee rebates.  \n* Free [NFTs](https://iq.wiki/wiki/non-fungible-token-nft). Stakers had an opportunity to get free NFTs.  \n* Bonus votes. Users were offered bonus votes in the polls.  \n* Waived fees. Stakers received many free [ERC-20](https://iq.wiki/wiki/erc-20) and ETH withdrawals daily.  \n* IEO participation. The platform provided tickets for IEOs on [FTX](https://iq.wiki/wiki/ftx). [\\[8\\]](#cite-id-n02pee3r0jm)[\\[13\\]](#cite-id-ohl2byx0zdi)$$widget0 [YOUTUBE@VID](z33VvqWH-fA)$$  \n  \n# FTT Token Crash  \n  \nIn November 2022, [FTX](https://iq.wiki/wiki/ftx) was accused of using customer funds, leading to its native FTT token crash and the [FTX](https://iq.wiki/wiki/ftx) bankruptcy.[\\[9\\]](#cite-id-guhjrv0a4sr)  \n  \nChangpeng Zhao, the CEO of [Binance](https://iq.wiki/wiki/binance), tweeted on November 6 that he was planning to sell off Binance’s FTT funds because of “recent revelations that have come to light,” referring to the CoinDesk report of FTX and Alameda’s balance sheet. Zhao’s announcement led to a rapid decline in FTT’s value over the next day. Bankman-Fried said in a tweet on November 10 that the platform saw $5 billion in withdrawals on November 6.[\\[19\\]](#cite-id-nr3p1jf0ie)  \n$$widget0 [YOUTUBE@VID](AbgRB3arCpY)$$","summary":"FTT is a cryptocurrency of the FTX ecosystem.","categories":[{"id":"cryptocurrencies","title":"Cryptocurrencies"}],"promoted":0,"tags":[{"id":"CEXes"}],"metadata":[{"id":"references","value":"[{\"id\":\"yzc7vekpcb\",\"url\":\"https://docs.google.com/document/d/1u5MOkENoWP8PGcjuoKqRkNP5Gl1LLRB9JvAHwffQ7ec/edit\",\"description\":\"Info\",\"timestamp\":1668597544241},{\"id\":\"9b7aq0lixd\",\"url\":\"https://bcbitcoin.medium.com/quick-guide-about-ftx-and-its-native-token-ftt-7b381d4480b3\",\"description\":\"Info\",\"timestamp\":1668597565903},{\"id\":\"3zjn6j58mfv\",\"url\":\"https://www.coindesk.com/price/ftx-token/\",\"description\":\"Info\",\"timestamp\":1668597633982},{\"id\":\"ciuqd04u2dn\",\"url\":\"https://news.bitcoin.com/ftx-contract-deployer-unlocks-192-million-ftt-exchange-tokens-questionable-tokenomics-highlights-red-flags/\",\"description\":\"Bitcoin.com\",\"timestamp\":1668597650619},{\"id\":\"fluu5mpialg\",\"url\":\"https://capital.com/ftt-token-who-owns-most-ftx-crypto\",\"description\":\"Info\",\"timestamp\":1668597956552},{\"id\":\"cw53f9gvnel\",\"url\":\"https://help.ftx.com/hc/en-us/articles/360029638552-FTT-Transparency-Page\",\"description\":\"Tokenomics\",\"timestamp\":1668598019892},{\"id\":\"zzmtobshdh\",\"url\":\"https://news.bitcoin.com/ftx-contract-deployer-unlocks-192-million-ftt-exchange-tokens-questionable-tokenomics-highlights-red-flags\",\"description\":\"Info\",\"timestamp\":1668599091906},{\"id\":\"n02pee3r0jm\",\"url\":\"https://blog.gameoflife.co/what-is-ftx-crypto-token-ftt-coin-a9c926058a6e\",\"description\":\"Info\",\"timestamp\":1668599312714},{\"id\":\"guhjrv0a4sr\",\"url\":\"https://capital.com/ftt-token-who-owns-most-ftx-crypto\",\"description\":\"Info\",\"timestamp\":1668600153386},{\"id\":\"fkkwr6lnlxs\",\"url\":\"https://twitter.com/FTX_Official/status/1591071832823959552?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1591071832823959552%7Ctwgr%5Ea2b88eafa7d9ad4337f828033e2fcb0c6ae0526e%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcapital.com%2Fftt-token-who-owns-most-ftx-crypto\",\"description\":\"Twitter\",\"timestamp\":1668600325004},{\"id\":\"fnndz4kw9mq\",\"url\":\"https://docs.google.com/document/d/1u5MOkENoWP8PGcjuoKqRkNP5Gl1LLRB9JvAHwffQ7ec/edit\",\"description\":\"Info\",\"timestamp\":1668602172522},{\"id\":\"5rqjxzoievw\",\"url\":\"https://blockduo.com/ftt-ftx-token/\",\"description\":\"Info\",\"timestamp\":1668602188303},{\"id\":\"ohl2byx0zdi\",\"url\":\"https://ftx.com/staking\",\"description\":\"Info\",\"timestamp\":1668602681196},{\"id\":\"0pwotih66d6n\",\"url\":\"https://www.fttdao.com/burn/\",\"description\":\"FTT Burn\",\"timestamp\":1668813293078},{\"id\":\"g3agm9ufm8g\",\"url\":\"https://help.ftx.com/hc/en-us/articles/360031149632-Collateral-Management\",\"description\":\"FTX Collateral\",\"timestamp\":1668813354202},{\"id\":\"nr3p1jf0ie\",\"url\":\"https://www.nerdwallet.com/article/investing/ftx-crash\",\"description\":\"FTX Crash\",\"timestamp\":1668815357627}]"},{"id":"website","value":"https://ftx.com/"},{"id":"instagram_profile","value":"https://www.instagram.com/ftx_official/"},{"id":"twitter_profile","value":"https://twitter.com/FTX_Official"},{"id":"youtube_profile","value":"https://www.youtube.com/c/FTXOfficial/about"},{"id":"telegram_profile","value":"https://t.me/FTX_Official"},{"id":"coinmarketcap_url","value":"https://coinmarketcap.com/currencies/ftx-token/"},{"id":"coingecko_profile","value":"https://www.coingecko.com/en/coins/ftx-token"},{"id":"etherscan_profile","value":"https://etherscan.io/token/0x50d1c9771902476076ecfc8b2a83ad6b9355a4c9"},{"id":"previous_cid","value":"QmVoRDMiLv47Y7tmCZy38cu2DbjGBF4rZo5ywNeWaSXCwK"}],"user":{"id":"0x6753061a4cffbc0A617e57E956A298D88702a94B"},"author":{"id":"0x2fE6aCD015384E1ee5138eF79fe1a434dA8FA12e","profile":{"username":"Mosesgadang","avatar":"QmQn29xmF91HqeJffVnsiU3b1qVQtMUi8d6vGVXEnjBhhN"}},"media":[{"name":"1QeZpLXnEW4","id":"https://www.youtube.com/watch?v=1QeZpLXnEW4","size":"0","source":"YOUTUBE"},{"name":"z33VvqWH-fA","id":"https://www.youtube.com/watch?v=z33VvqWH-fA","size":"0","source":"YOUTUBE"},{"name":"VbGCUuZHSoA","id":"https://www.youtube.com/watch?v=VbGCUuZHSoA","size":"0","source":"YOUTUBE"},{"name":"671wDRyk-3w","id":"https://www.youtube.com/watch?v=671wDRyk-3w","size":"0","source":"YOUTUBE"},{"name":"AbgRB3arCpY","id":"https://www.youtube.com/watch?v=AbgRB3arCpY","size":"0","source":"YOUTUBE"}],"ipfs":"QmVoRDMiLv47Y7tmCZy38cu2DbjGBF4rZo5ywNeWaSXCwK","transactionHash":"0xafe9771f75e656464bb1a92ada7d6649decb8a5869fc0ab47bc8e4d89f195fa0","created":"2022-11-16T12:51:42.073Z","updated":"2022-11-18T23:54:14.691Z","images":[{"id":"QmWMnAF6eDcsQvNrCDNZZXymY9tnCQpmJWVuv287q3BWHE","type":"image/jpeg, image/png"}]}