FTX is a crypto exchange established by Samuel Bankman-Fried, and Gary Wang in 2018; its headquarters is located on the Bahamas island. The exchange facilitates the sale, purchase, and exchange of all the major cryptocurrencies. The company also incorporated another crypto exchange entity named FTX.US for United States citizens.
The product range of the exchange includes leveraged tokens, and derivatives, options. It also has the facility for spot markets above 300 cryptocurrencies with many trading pairs like ETH/USDT, XRP/USDT, and BTC/USDT. Traders can also trade with the exchange’s native token pair FTT/USDT.
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The company explains its mission in the following words,
“FTX is a cryptocurrency exchange built by traders, for traders. FTX offers innovative products, including industry-first derivatives, options, volatility products, and leveraged tokens. We strive to develop a robust platform for professional trading firms and intuitive enough for first-time users”.
The exchange is on the path to fast future growth, operating 11% of the $2.4 trillion monthly derivatives transactions. It has raised its value to $32 billion, spending a massive budget on marketing and signing agreements with celebrity brand ambassadors like David Ortiz, Kevin O’Leary, Tom Brady, and others. The company also got funds worth $1.8 billion from Temasek, Thoma, Sequoia, and others.
The exchange purchased crypto business products tracking apps worth $150 million in August 2020. After that, the cryptocurrency exchange paid $210 million for the branding rights of the esports group TSM. TSM FTX, which stands for Future Exchange, is the new name of the gaming organization in honor of its new sponsorship with FTX, a Hong Kong-based company.
Almost sixty investors, including Softbank and Sequoia Capital, made a handsome investment in the subject crypto exchange in July 2021. It established a $2 billion venture fund called FTX Ventures on January 14, 2022. It received $400 million in Series C fundraising in January 2022 at a $32 billion value. FTX.US declared on February 11, 2022, that it would shortly start providing stock trading to its US clients.
FTX.US was awarded as the auction winner for the digital assets of the defunct cryptocurrency brokerage Voyager Digital on September 26, 2022. The exchange got a total transaction value of around $1.42 billion, which includes $1.31 billion in cryptocurrencies owned by Voyager with an extra $111 million. Voyager’s creditors and the bankruptcy court’s approval were subject to completing the auction arrangements.
The two most significant accomplishments of the subject crypto exchange since its founding in May 2019 are garnering 23.1 million customer visits and reaching $ 32 billion by January 2022. The company provides several services and is very popular among cryptocurrency enthusiasts.
The Major Partnerships:
It has made partnerships, including renaming the Miami Heats basketball stadium as FTX Arena for 19 years with a deal of $135 million. It also announced a ten-year naming deal with TSM against $210 million on June 04, 2021. TSM changed the name to Team SoloMidFTX.
The exchange had also made a deal with Major League Baseball (MLB) on June 23, 2021, to put its logo on the umpire’s uniforms. An American football player, Tom Brady, is an ambassador for the crypto exchange.
Apart from the partnerships mentioned above, FTX made sponsorship deals with Mercedes-AMGPetronas F1 Team, the T20 cricket world cup 2021 held in UAE, MLB Home RUN Derby X, and GameStop, and also purchased digital assets of the bankrupt crypto company Voyage Digital.
Supports Fiat Currencies:
Along with crypto, the exchange also supports nine fiat currencies, including the United States dollar, the Australian dollar, Euro, the Canadian dollar, the Argentinian peso, Ghanaian Cedi, the Swiss franc and Brazilian real, and British Pound. The traders can quickly sell and purchase through wire transfer.
The other partners of the subject crypto exchange include the following famous cryptocurrency firms:
- FENWICK & WEST
- Ribbit Capital
- Multicoin Capital
It provides spot services of BTC, LTC, ETH, BCH, PAXG, and USDT with a substantially more advanced feature set than other major US platforms.
Industry-leading custodians, a custom-built hot and cold wallet solution, full external backing of all hot wallet funds, and industry-standard security are just a few of FTX.US’s security features.
It is a famous name for providing market-leading liquidity, focusing on industry top market investors to the most famous. FTX.US has enjoyed market-leading order books since its inception.
By combining industry-leading banking on-ramps, the crypto exchange makes it easy and fast to deposit and withdraw fiat. Secondly, it has seamlessly integrated stablecoins with USD to increase liquidity and user-friendliness.
Futures: the traders can open long-term and short-term trades on the famous cryptocurrencies using 100 quarterly and perpetual future pairs with margins up to 101x.
Leveraged Tokens: It provides traders ERC20-based tokens that give up to 3X leveraged exposure to the underlying trading pair.
Options: A variety of call-and-put options that allow the holder the right but not the responsibility to gain or sell at a future strike price enable traders to speculate on future price direction and hedge against their open positions.
MOVE: These contracts, which are effectively a bet on volatility, allow traders to rely on how much the price of a cryptocurrency may fluctuate over a specified period, regardless of the direction. The contract yields a profit if the underlying cryptocurrency’s price changes by more than a specific dollar amount, either upwards or downwards.
Spot Markets: The exchange enables access to popular cryptocurrencies, notably Bitcoin, Ethereum, Binance Coin, Chainlink, and Ripple’s XRP, through its more than 100 distinct spot trading pairings.