What was the FTX (FTT) crypto token used for?

FTT is the native crypto token of FTX cryptocurrency exchange.

FTT was an exchange token that gave users access to FTX's special services, such as trading fee discounts and waivers.

Let's find out more about FTT and FTX.

What was FTX's FTT token used for?

FTX is a Bahamas-based cryptocurrency exchange that offered its users the ability to trade a wide range of digital crypto assets. The exchange was popular for its derivatives and leveraged products, which developed their own unique client base.

The exchange also offered spot market trading with over 300 cryptocurrency pairs.

• Read more: U.S. will hold a congressional hearing on the FTX collapse

Launched in 2019, FTT is an exchange token minted and issued by FTX to help FTX traders manage the large number of services that the exchange offered to its clients.

By holding FTT, FTX users could gain access to a range of exchange services, including special discounts, waivers, rebates, and early access to token sales.

The FTT token came with a unique clawback prevention feature that protected consumers from losing money due to liquidation. This was done by using a three-tiered liquidation model, which protected consumers from losing additional funds.

The token was also dubbed a "leverage token," which meant that users could transact with FTT to earn 3x leverage on their trades.

Furthermore, the token was also used as a universal stablecoin settlement. In simpler terms, the token allowed users to trade any cryptocurrency with other crypto tokens without the need to convert assets into stablecoins first.

Following the FTX-Alameda bankruptcy, FTT's token price fell over 100% and left many FTX users without access to their funds.

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