FTX Token
Crypto Overview
Overview
FTX Token (FTT) was the native cryptocurrency of the now-defunct FTX cryptocurrency exchange. The token ceased trading after the collapse of FTX in November 2022. The exchange filed for bankruptcy following revelations of misappropriation of customer funds and fraudulent activities.
Purpose and Utility
FTT was designed as a utility token for the FTX exchange, offering holders trading fee discounts and other platform benefits. However, investigations revealed that the token was primarily used as collateral for loans between FTX and Alameda Research, both controlled by Sam Bankman-Fried.
Business Model and Operations
While the stated business model involved legitimate exchange operations, the actual implementation involved significant fraudulent activities, including:
- Misuse of customer funds
- Market manipulation
- Fraudulent loans using FTT as collateral
- Creation of artificial trading volume
Current Status
FTT is effectively worthless and no longer trades on major exchanges. The token's founders and executives face criminal charges for fraud and other financial crimes. The token no longer serves any legitimate utility.
Crypto Impact
To assign a comfort level investing in FTX Token from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to FTX Token.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.