What’s next for the FTX token?

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The native tokens of centralized cryptocurrency exchanges like FTX, Huobi, and Binance (which was banned UK earlier this year) have gained in value as the growing interest in cryptocurrency trading generates higher income through trading fees.

The FTX coin price this year has reflected the volatility of cryptocurrency prices and trading activity, soaring during the strong rally seen in April and May and reaching an all-time high when cryptos like bitcoin hit a record low. a short squeeze in early September.

What is the FTX FTT part and how does it work?

In this analysis, we take a look at how FTX uses the FTT coin and the latest price projections going forward.

FTT feeds the FTX exchange

The FTX cryptocurrency derivatives exchange was founded in 2017 and launched in May 2019 by CEO Sam Bankman-Fried and CTO Gary Wang. Bankman-Fried was previously a trader at Jane Street Capital and designed their automated over-the-counter (OTC) trading system. He also founded the quantitative trading and cryptocurrency market-making firm Alameda Research.

Wang also co-founded Alameda Research and was previously a software engineer at Google.

FTX aims to provide a platform with advanced features for professional traders, while remaining intuitive enough for new users. Its features include warranties, liquidation processes and maintenance margins as well as product listings. It offers leveraged tokens, which allow traders to open leveraged positions without the need to borrow funds on margin. The tokens are ERC-20 compatible, so they can be listed on any spot cryptocurrency exchange.

Its liquidation engine aims to reduce the likelihood of recoveries occurring, unlike other derivatives exchanges where clients can lose large amounts of funds.

According to FTX blog post,

“If a user has a leveraged futures position and the markets move enough relative to their account that their NAV is negative, then someone has to pay for that loss; and in crypto, you can’t repossess the assets of the bankrupt account owner from outside the system, so you’re stuck with other users – the users who aren’t liquidated – footing the bill.

He explains, “Like most clearance engines, the one FTX uses first detects when a user has fallen below the maintenance margin. Unlike many other platforms, it chooses smart and efficient values ​​for these.

The exchange sends “reasonable and volume-limited liquidation orders to close positions that fall below the maintenance margin (which starts at 4.5% and increases with position size)” and if there is a large liquidation and markets fall rapidly, liquidity providers take and hedge their books on other exchanges to avoid a likely bankruptcy.

As an FTX cryptocurrency, FTT is the backbone of the ecosystem. Regulations in the US restrict trading in derivatives, so FTX offers a separate site for US customers where FTT is not available. In the FTX crypto news from October 25, the company completed the acquisition of the American company LedgerX, a derivatives company regulated by the Commodity Futures Trading Commission (CFTC).

The company said:

“With the finalization of the sale and purchase agreement for this acquisition, FTX US will obtain a CFTC regulated designated contract market (DCM), a swap execution facility (SEF) and a clearing organization of derivatives (COD). These will be available to retail and institutional investors 24/7 and will provide block trading and algorithmic trading opportunities for institutional investors. “

It renamed LedgerX into FTX US Derivatives.

Internationally, FTX lists FTT / USD, FTT / USDT, and FTT / BTC pairs for trading. The FTT token is also listed on the Binance, Bitfinex, BitMax, CoinEx, Huobi, and WazirX exchanges.

FTX users who hold FTT tokens receive discounts on their trading fees in a tiered structure of 3% for holdings of at least $ 100 (£ 75) up to 60% for holdings of $ 5million. dollars.

Users can also wager on FTT to receive a higher percentage of trading fees from the users they refer, manufacturer fee discounts in addition to standard fee discounts, opportunities to earn non-fungible tokens (NFT ) free, bonus governance votes, increased drop rewards, a certain number of free ERC-20 and Ether (ETH) withdrawals per day, and tickets for Initial Exchange Offers (IEO) hosted on FTX.

FTX redeems and burns FTT tokens, supporting its value. It purchases tokens equivalent to 33% of the generated trading fees, 10% of the net additions to the support fund and 5% of the fees generated by other uses of the platform. FTX buys the tokens on its FTT / USD marketplace and burns them weekly.

The FTT price reflects the volatility of the cryptocurrency

The FTT price was $ 1.73 when it launched in 2019 and changed little to $ 2.14 by year-end. It gradually increased in 2020, reaching $ 5.77 by the end of the year.

The price of FTT then began to recover rapidly in early 2021, as the cryptocurrency markets recovered and interest in trading them took off. The FTT climbed to $ 34.81 on February 20, climbed again to $ 43.43 on March 15, $ 59.56 on April 14 and $ 63.08 on May 10, in line with peaks in crypto prices. -coins. Crypto rallies tend to attract new retail traders who are looking to reap large returns on volatile prices.

The price of FTT fell from May as cryptocurrency prices collapsed and trading activity fell. The price hit $ 21.93 on June 26 and resumed its ascent as the cryptocurrency markets rallied over the summer. FTT climbed back to $ 54.11 on August 14 and the price rose from $ 48.50 on August 31 to a new high of $ 65.97 on September 1 after FTX announced the acquisition of LedgerX. A new rally took FTT to a new all-time high of $ 85.02 on September 9, as cryptocurrency markets continued to rise and a short squeeze pushed the price of bitcoin higher.

A drop in the crypto markets knocked the FTT down to $ 47.97 on September 28, but a price hike in November took the token back above $ 65. The FTT price has remained volatile in recent weeks, trading at $ 46.24 on November 28 and then breaking back above $ 50.

What is the outlook for the price of TTF? What do forecasters expect for the direction of price?

FTT crypto price prediction: what will the FTX coin be worth in the future?

Technical analysis of CoinCodex Sentiment showed neutral, with the FTT trading at $ 51 at the time of writing on December 1. There were 17 oscillator indicators giving bullish signals and 11 bearish signals. CoinCodex has predicted that the price of FTT could drop to $ 49.19 by December 6. There was technical support at $ 49.85 down to $ 47.76, with resistance rising $ 51.93 to $ 54.01, according to the data.

The FTX crypto price prediction of PortfolioInvestor predicted that FTT could fall through the support at $ 43.69 by mid-December, but more than double in value to $ 109.50 by the end of 2022. The forecast site based on algorithms predicted that FTT could double again to trade at $ 268.19 by the end of 2025.

The prediction of the FTT token price of DigitalCoin estimated that the price could average $ 91.31 in 2022 and $ 103.81 in 2023 based on historical data. It was less bullish than WalletInvestor, predicting that the FTT price could average $ 149.42 in 2025 and $ 226.18 in 2028, peaking at $ 236.11 during that time period.

The FTT / USD forecast of Price prediction suggested that FTT could trade at $ 54.82 at the end of 2021, with an average price of $ 78.19 in 2022 and $ 249.31 in 2025. By 2030, the data predicted that FTT could rise. negotiate at an average price of $ 1,508.04 for the year.

It’s important to keep in mind, however, that cryptocurrency markets remain extremely volatile, making it difficult to accurately predict the price of a coin in a matter of hours, and even more difficult to give estimates to. long term. As such, algorithm-based analysts and forecasters can and do get it wrong.

We recommend that you always do your own research and take into account the latest market trends, news, technical and fundamental analysis and expert opinions before making any investment decisions. Keep in mind that past performance is no guarantee of future returns and never invest more than you can afford to lose.

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