FTX.US is a derivative-oriented cryptocurrency exchange that offers a range of innovative trading products on the cryptocurrency market such as BTC options, leveraged tokens, MOVE contracts, prediction markets, perpetual swaps, and other services. The exchange that is regulated by the United States was founded in May 2019. The platform tries to build a digital currency ecosystem on its basis.
FTX tries to establish itself on the market of cryptocurrency derivatives, which is an expanding segment. The daily trading volumes are high on the platform despite its young age and focus on American customers. The service is not available for users outside of the US.
FTX was incubated by Alameda, which created and developed this project. The platform attracted investments with ease, and within 3 funding rounds 8 million dollars were raised. Liquid Value Capital was one of its contributors. After 2 months of work, the exchange was able to reach the trading volume of 100 million USD a day. The company is owned by FTX Trading Ltd, headquartered in Antigua and Barbuda, and having satellite offices in Hong Kong.
FTX has discovered the gaps in the market and tries to fill them with specific products. This business strategy has turned the company into a unique platform with exceptional services. There are over 20 digital assets at the disposal of users who can trade 45 tokens with leverage. The exchange gives access to regular spot trading supporting transfers in fiat and popular cryptocurrencies along with stablecoins.
The company develops products for both individual and institutional traders. Trying to attract more institutional traders, the FTX team has developed the functionality for deep liquidity and orderbooks, a liquidation fund, unlimited withdrawals, and an automated OTC desk for traders buying cryptocurrencies in large amounts. The account holders can easily navigate the platform and use the chat groups in more than 10 languages. There is a mobile app for people trading on the road.
As it has been said above, the platform attracts users with its incredible assortment of services. The unique services include leveraged tokens and MOVE contracts that make the company stand out on the market. Offering futures, the company employs the advanced liquidation engine that considerably reduces the likelihood of clawbacks occurring by using a three-tied liquidation model. The traders use a single universal margin wallet for derivatives trading, so it’s easier to rebalance and prevent positions from getting liquidated.
The platform delivers high-quality customer support, tight spreads, and TradingView charts that help users make smarter decisions. The leverage the platform provides reaches 10x thus increasing the users’ profit potential. The conversion of cryptocurrencies can be performed within the account easily.
FTX offers quarterly and perpetual futures on popular cryptocurrencies such as ETH, BTC, LINK, and BNB. Index Futures listed on the resource enable trading in different segments of the cryptocurrency market without problems, letting users perform operations with large-cap, mid-cap, and small-cap coins. It’s also possible to trade exchange tokens, privacy tokens, regional baskets, and oil contracts.
MOVE contracts became a pioneering product on the platform working in the same way as futures expiring to the value of the difference between the price of the asset over the first hour when the contract was concluded to the last hour of the expiration time. It is estimated over a set period (each day, week, quarter) and lets members of the community trade on the amount that will move and get profit regardless of the movement direction. The volatility of a cryptocurrency price within the definite period is the basic determinant of a contract’s value.
FTX options can be customized differently, and traders can configure the strike prices and expiration time the way they want. Spot markets are available for the traditional trading of cryptocurrencies. At the time of writing, the platform supports TC, ETH, BNB, LINK, FTT, BCH, USDT, BTMX, XAUT, TRYB, and PAXG coins. The prediction markets present the most unusual product that allows members of the community to predict the results of some events and trade on them. For instance, they can bet on candidates in the election race.
FTX financial details
The fiat currencies supported by the platform include USD, EUR, CAD, GBP, and AUD. It’s possible to make deposits with a credit card. Also, the platform promotes its own utility token named FTT.
The platform uses multi-tier KYC-verification. There are different kinds of FTX accounts, so the withdrawal limits depend upon the type of the account. Users who provide email only can withdraw 1,000 USD (it’s a lifetime amount). One can withdraw 9,000 USD daily after providing an email, name, and address. Those who need to have access to unlimited crypto withdrawals should provide more detailed information (date, place of birth, proof of address, explanation of source assets, ID, photo of user with ID in hand). There is a higher level with stricter requirements (the bank statement should be added to the list of documents). After the procedure, unlimited OTC transfers become available for users as well.
FTX also offers a referral program that promises 30% of fees from referees who signed up with your referral code. However, the team is ready to reevaluate the terms for referrals who refer over 25 million USD per month. There is also a VIP program for pro-level traders offering lower fees, flexible API limits, an account manager, a direct line with a senior developer, and other perks.
FTX team and key investors
The team is transparent and its members can be found on LinkedIn as their profiles are publically available. The company FTX was founded by its CEO Sam Bankman-Fred who previously worked as a trader on Jane Street Capital’s international ETF desk. The second co-founder of FTX is a former Google software engineer Gary Wang taking the position of CTO in FTX at the moment of writing.
In 2017, they had already similar experience when they both established the company Alameda Research Ltd. that became a leading cryptocurrency liquidity provider. This company also assists FTX in some issues such as 24/7 OTC services and maintaining deep order books.
The FTX platform is supported by Binance that acted as a Lead Investor during the Corporate round. Such companies as FBG Capital, Kenetic, Greylock Partners, Proof of Capital, and One Block Capital became the Seed round investors.