FTX is a centralized cryptocurrency exchange (CEX) that specializes in derivatives markets. It also handles spot and over-the-counter (OTC) trading, leveraged and volatility tokens, and staking. The platform started its operations in May 2019.
FTX customers must comply with Know Your Customer (KYC) regulations. Traders from the USA can’t use the FTX crypto exchange. Instead, they can trade on its affiliate FTX US. The FTX volume monitor is used to report the performance of cryptocurrency exchange volume worldwide.
The platform is particularly focused on futures markets and leveraged assets. Traders can opt for perpetual or quarterly futures contracts. The FTX cryptocurrency exchange also allows customers to trade using indices to reduce possible risks.
There are eight main indices on the FTX crypto exchange:
- EXCH – markets for BNB, HT, OKB, LEO, and FTT;
- DRGN – the Dragon Index. It contains ARPA, BTM, IOST, NEO, NULS, ONT, QTUM, TRX, and VET;
- ALT – the Altcoin Index. It contains multiple coins with high market capitalization;
- MID – the Mid Cap Index. It contains a broad range of medium market capitalization coins;
- SHIT – the Shitcoin Index. It contains many low market capitalization coins;
- PRIV – the Privacy Index. It contains various privacy coins;
- DEFI – the DeFi Index. It contains various coins for exchanges and swaps;
- WSB – the WallStreetBets Index. It contains coins that are popular on the r/WallStreetBets subreddit.
FTX trading pairs can be created using one of the supported fiat currencies, including USD, EUR, GBP, and AUD. Users can select to have the FTX crypto prices paired with their preferred fiat or cryptocurrency on the spot market. There are over 100 FTX trading pairs in the spot market.
FTX exchange fees are based on a tiered fee structure for both makers and takers. There are six tiers which are based on the 30-day volume. If the FTX crypto price value of the volume per 30 days is below $2 million, the maker fees are 0.020%, and the taker fees are 0.070%.
FTX spot market commission fees on maker orders are charged using the proceeds currency for buyers and the quote currency for sellers. Both buyers and sellers must pay the taker order fees using the quote currency.
Leveraged tokens are one of the main products offered by the FTX cryptocurrency exchange. They allow users to leverage up to 101x. Customers that acquire leveraged tokens must pay FTX crypto fees of 0.10% for token creation and redemption, and 0.03% for daily management.
There are no fees for futures settlement, OTC trading, wallet conversions, or deposits. In the case of OTC trading, the fees are included in the quoted price, and FTX crypto fees for futures commissions are charged in USD.
Trading can also be conducted using tokenized stocks. These include tokens for both traditional fractional stocks, like TSLA, AMZN, AAPL, and BABA. Tokenized stocks can be traded on both FTX spot and futures markets.
In May 2022, FTX launched the beta version of a new feature – the FTX Stocks platform. It allows non-tokenized stocks to be traded alongside cryptocurrencies, enabling an all-in-one service for trading traditional assets as well as cryptocurrencies and NFTs. As a brokerage service, it enables ETF trading and investments in fractional shares.
Special terms apply to customers that hold and stake FTT, the platform’s native token. FTX crypto price discounts apply to the trading fees for users that hold at least $100 worth of FTT. Those with more than $2 million worth of FTT in their holdings can reach the VIP 3 level and receive 40% off FTX trading fees.
FTT stakers are also eligible to receive up to 00030% in maker rebates. The FTX crypto price to bring the maker fees down to zero is 25 FTT.
Customers can list non-fungible tokens (NFTs) on the platform. The FTX crypto fees for listing one NFT via the self-service tool are $3 per token. If the NFT is purchased or traded on the platform, the seller is charged 2%.
Additionally, the FTX crypto exchange also offers referral and VIP programs for professional traders. Market makers can join the Backstop Liquidity Provider program, where they can take on positions from FTX accounts that are on the brink of bankruptcy.
About the Company
The FTX crypto exchange was co-founded in May 2019 by two MIT graduates, Sam Bankman-Fried and Gary Wang. While the company was initially founded in Hong Kong, as of 2021, its headquarters are located in The Bahamas.
In its first year, FTX launched its mobile app and added support for eleven fiat currencies, including USD, EUR, and BRL. The platform’s native token, FTT, was listed in July 2019.
During its second year in the industry, FTX observed continuous growth and became one of the top five cryptocurrency exchanges by volume. Its record performance was recorded in April 2021, when the monthly FTX trade volume exceeded $400 billion.
In October 2020, the list of FTX trading pairs in the derivatives market included 12 newly added fractional stocks. The new tokenized assets included stocks like Apple, Amazon, and Tesla.
In January 2022, it was reported that the FTX crypto exchange was valued at $32 billion, having raised nearly $2 billion in the latter half of 2021. The company had nearly doubled its valuation, going from $18 billion in July 2021.
Additionally, the FTX cryptocurrency exchange has seen rapid growth in its userbase. According to records, between October 2021 and January 2022, the number of registered users increased by 60%.
By early 2022, the FTX trade volume was averaging $10 billion daily. In May of that year, the exchange passed a critical milestone as the FTX spot Bitcoin trading volume exceeded Coinbase for the first time at $30 billion in a month. The average daily FTX volume for Bitcoin was more than $2 billion per day, making it the second-largest CEX.
Over the years, FTX has started several partnerships with traditional sports and esports organizations. In 2021, the company signed a $135 million deal to rename the American Airlines Arena, the home to the Miami Heat, to FTX Arena. Another naming deal was struck with the esports organization TSM, now known as Team SoloMid FTX.
In September of the same year, the company started a partnership with the Mercedes-Benz team on Formula One and signed a deal with the International Cricket Council. Also in 2021, FTX announced a partnership with Major League Baseball (MLB). In 2022, FTX was the first title sponsor for the MLB Home Run Derby X.
Additionally, the company is known for its philanthropic strategy. 1% of all FTX crypto fees revenue is pledged to the FTX Foundation and donated to various charities and causes worldwide.
FTX plans to expand its services in the future with the offering of the FTX Card. It’s a Visa debit card that allows users to pay for goods and services. It automatically exchanges the crypto balance to the required amount in the desired fiat currency at the point of sale.
Sam Bankman-Fried (SBF) is the CEO of FTX. He’s a Physics graduate who worked as an ETF trader at Jane Street Capital before founding his own trading firm, Alameda Research. SBF initially gained interest in cryptocurrencies around 2018 after attending a conference on the subject.
Gary Wang is the Chief Technology Officer of FTX. He studied math and computer science at MIT. Prior to joining forces with SBF, Wang worked as Google’s software engineer, building price aggregation systems for flights. Both Wang (4) and Bankman-Fried (2) were listed as Forbes’ top five richest crypto and blockchain billionaires in 2022.