What are the uses of FTT currency? What factors affect its price?

Dec 06,2022
What are the uses of FTT currency? What factors affect its price?

Earlier, Xiao Bian has introduced FTT coin, which is the token of FTX platform. However, there are still some novice investors who do not know much about the use of FTT currency and what factors affect its price. Then, let's take a look at it.

What are the uses of FTT currency?

At present, FTT has three main purposes, namely, pledge preference, replacement of guarantee and participation in FTXIEO subscription.

1. Pledge preference

On FTX, users can pledge FTT on FTX to obtain more concessions.

According to the official materials of FTX, the preferential policy of pledging FTT is implemented by using the step system, which is divided into eight levels, from zero pledge to pledge 1 million pieces.

The preferences of pledged FTT include:

Increase the proportion of invitation commission: With the increase of the proportion of pledge FTT, the inviter will get a higher proportion of commission (maximum 40%)

Reward for service charge of listing: With the increase of the proportion of FTT pledged, the higher reward for service charge of listing can be obtained (the maximum discount can be 0.003%, excluding transaction service charge)

Additional voting rights: with the increase of the proportion of pledged FTT, more voting rights can be obtained to participate in the governance decision of FTX platform

Additional rewards for air drop: with the increase of the proportion of pledged FTT, more additional rewards can be obtained when participating in air drop (maximum 14%)

Deduction of withdrawal expenses: With the increase in the proportion of pledged FTT, ERC20 and ETH can obtain deduction of withdrawal expenses

In addition to the above discounts, discounts can also be obtained on spot transaction service fees and over-the-counter transactions (OTC) of various products. According to the official news of FTX, it can get 60% commission refund and 0.02% OTC discount at most.

2. Replacement guarantee

When you have FTT on FTX, you can use it as collateral to expand the efficiency of capital utilization.

The reason for this is FTX's mixed margin system. FTX allows many properties to be consolidated into a security deposit in French currency, which is more convenient in presentation, so that your FTT can replace USD as a reserve security deposit. Therefore, you do not need to deliberately keep some French currency unused, which can greatly improve the efficiency of capital utilization.

3. Participate in FTXIEO subscription

The full name of IEO is Initial Exchange Offerings, which is a way of selling new currency for the first time. It is the process of issuing core new currency by the exchange.

The project party will sell its own currency through the exchange, and the exchange platform will help raise assets to reduce the time and capital cost of the project party during the sale.

As an influential exchange, FTX will help the project party raise assets on time and publish the information of IEO, such as SLRs, MERs, OXY, MAPS, and ATLAS that will be pre purchased in the near future.

When subscribing for IEOs on FTX, investors must pledge FTT platform currency before subscribing. As long as you pledge more than 150 FTTs, you can obtain one subscription bond.

Generally, the return on investment on the first day of IEO release is very high. If you have FTT, you can subscribe to IEO and obtain tickets with potential high remuneration.

Factors affecting the price of FTT currency

The value of FTT currency largely depends on the development of FTX. At the time of FTX release, the cash exchange Binance and derivative product exchanges Bitmex and Okex had a very stable and large trading volume in the market. However, FTX has developed very fast. The release of stock certificates, leveraged currency and forecast commodities and other innovative digital currency investment methods have been accumulated by FTX, which has broken a path in the competition among many exchanges.

In April 19, 2021, FTX's derivatives trading volume reached US $18.6 billion, once exceeding the US $18.4 billion of Yen An, becoming the world's largest digital currency derivatives trading volume.

The FTX team is also very close to current events in product design, and always releases relevant products corresponding to current events. For example, the futures contract TRUMP-2020 was released in February 2020, allowing investors to predict whether it will be renewed. The futures help FTX attract many people who are interested in politics to apply for trading.

As long as the FTX platform continues to innovate, develop and operate its ecological chain, the need for FTT will also become higher and higher, driving up the currency price.

However, this confrontation between Yen An and FTX is probably something that most investors can expect. This event pushed the price of FTT to the bottom, even touching $2.5, which also shows the close relationship between FTT and FTX.

Speaking of this, I believe you have a certain understanding of the use of FTT coins and what factors affect the price of FTT coins. In general, Xiao Bian also reminds investors that although investing in digital currency is also a very popular project, the currency circle market is volatile and unpredictable, and investment is accompanied by certain risks. You must understand clearly before entering the market, and do not follow the trend blindly.