What is FTX?
FTX is a cryptocurrency derivatives exchange created to offer a range of futures, leveraged tokens, and OTC trading options. Derivatives are financial contracts that can be traded on an exchange between two or more parties. Futures, in particular, obligate parties to transact an asset at a specified future date and price. Over-the-counter (OTC) trading involves the direct trade of securities through a broker-dealer network, without being listed on the exchange.
FTX aims to solve the existing flaws within futures exchanges and take the derivatives market towards institutional-grade trading. Its mission, according to the whitepaper summary, is to become one of the best crypto derivatives exchanges available.
Backing FTX is Alameda Research, a quantitative cryptocurrency trading firm with assets under management (AUM) of approximately $100 million. AUM refers to the total market value of investments that an entity or individual manages on behalf of their clients.
FTX launched its own automated OTC RFQ system, which has scaled its volume to an impressive $30 million per day without the need for extensive marketing. RFQ stands for “request for quote,” offering institutional-sized access to trading groups, OTC desks, agency brokers, and other participants to make and source off-screen block liquidity in futures, crypto options, and more.
FTX was launched in 2019 and has since grown to become a significant player in the cryptocurrency derivatives market. Its whitepaper was last updated on June 25, 2019. The FTX team is made up of professionals from leading Wall Street quant firms and tech companies such as Jane Street, Optiver, Susquehanna, Facebook, and Google.
Sam Bankman-Fried, a former trader on Jane Street Capital’s international ETF desk, serves as FTX's CEO. Meanwhile, Gary Wang, FTX's founder, and CTO was previously a software engineer at Google.
FTX Trading Ltd was established in Antigua and Barbuda and is headquartered in the Bahamas, where it continues to operate with the aim of revolutionizing the crypto derivatives exchange market.
In conclusion, FTX Token (FTT) offers a range of futures, leveraged tokens, and OTC trading options, with a mission to provide institutional-grade trading. With its impressive growth and backing from Alameda Research, FTX is a significant player in the cryptocurrency derivatives market.
The investment information, comments, and recommendations provided here do not fall under the scope of investment consulting. Therefore, making an investment decision based solely on the information and comments provided here may not yield results that meet your expectations.
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