FTX Token

Overview

FTX Token (FTT) was the native cryptocurrency of the now-defunct FTX cryptocurrency exchange. The token ceased meaningful trading after the collapse of FTX in November 2022. The exchange filed for bankruptcy following revelations of misuse of customer funds and fraudulent activities.

Purpose and Utility

FTT was designed as an exchange token that offered trading fee discounts and other benefits to holders on the FTX platform. The token also served as collateral within the FTX ecosystem.

Business Model Analysis

Investigations revealed that FTX and Alameda Research (a related trading firm) engaged in fraudulent practices, including: misappropriation of customer funds, artificial inflation of token value, and using FTT tokens as collateral for loans while manipulating its price.

Real-World Usage

Following FTX's bankruptcy in November 2022, FTT lost virtually all utility and value. The token is no longer actively traded on major exchanges and has no meaningful ecosystem or use case.

Development Activity

There is no current development activity as the underlying platform has been shut down and its founders face criminal charges.

Token Distribution

Historical records show that token distribution was heavily concentrated among FTX insiders, particularly Sam Bankman-Fried and other executives, who have been charged with various financial crimes.