- Founded: 2017
- Ceased Operations: 2022
What did FTX do?
FTX was a cryptocurrency exchange and trading platform that was founded in 2017 by Sam Bankman-Fried and Gary Wang. FTX stood for “Futures Exchange” and initially focused on providing futures and derivatives trading for cryptocurrencies.
FTX gained popularity due to its wide range of trading products, including leveraged tokens, options, and innovative tokenized assets. The platform offered trading pairs with various cryptocurrencies and also supported fiat currencies like USD and EUR.
In addition to its trading features, FTX garnered attention for its partnerships and sponsorships in the sports and entertainment industries. FTX secured naming rights for notable sports venues, such as the Miami Heat’s home arena, which was called the FTX Arena.
During its operation, FTX launched its own native token called FTT (FTX Token), which served various purposes within the FTX ecosystem, such as fee discounts, voting rights, and revenue sharing.
Who started the company?
Why did FTX go out of business?
FTX and FTX.US crashed due to a lack of liquidity and mismanagement of funds, followed by a large volume of withdrawals from rattled investors. According to a complaint filed by the Securities and Exchanges Commission (SEC), FTX co-founder and CEO Sam Bankman-Fried used customer funds as a “personal piggy bank” to make private investments including real estate and political campaign donations.
What are some alternatives to FTX?
For Americans looking for a way to buy various cryptocurrencies, the most reliable option is Coinbase, though it has also become best practice to store cryptocurrencies in non-custodial wallets (so your funds are safe from the collapse of a exchange or platform). Many now choose to transfer their token to a quality non-custodial wallet like NOW Wallet, a product of NOWPayments.