FTX Token (FTT) was the native utility cryptocurrency of the now-defunct FTX exchange, a platform founded in 2019 by Sam Bankman-Fried that briefly stood as one of the world's largest crypto derivatives markets. Designed to drive user engagement, the token granted holders benefits such as significantly discounted trading fees, staking rewards, and the ability to be used as collateral for futures positions. However, FTT became central to the exchange's catastrophic collapse in November 2022 after revelations surfaced that FTX's sister hedge fund, Alameda Research, was using the token to artificially inflate its balance sheet and secure massive loans. The ensuing liquidity crisis forced FTX into bankruptcy and led to criminal fraud convictions for its leadership; while FTT still technically exists and occasionally sees speculative trading, it has lost its underlying utility and the vast majority of its value.
