FTX is a centralized cryptocurrency exchange (CEX) headquartered in The Bahamas and founded by Sam Bankman-Fried and Gary Wang in 2019.
FTX was originally based in Hong Kong but moved to The Bahamas after a regulatory crackdown by China, the U.S., South Korea, and Thailand.
FTX, at its peak in 2022, had over one million users worldwide and averaged USD $10 billion daily trading volume.
The exchange offers spot market cryptocurrency trading, but it’s also a derivatives exchange and clearinghouse, trading cryptocurrency futures and options.
Non-U.S. users are offered the ability to stake FTT, FTX’s utility token, that can be used to reduce trading fees on the exchange and act as collateral against futures positions.
FTT can also be staked, earning you interest.
It operates FTX.com for non-U.S. users and FTX.us for U.S. clients.
FTX.us clients, unlike international clients, can browse, buy and sell NFTs.
FTX is regulated by the Commodity Futures Trading Commission (CFTC) and is used by retail and institutional investors.
Bankman-Fried and FTX have raised substantial money from investors, including $900m at an $18 billion valuation in July 2021.
It went on to raise a further $400 million in January of 2022. In September 2022, FTX was looking to raise $1 billion at a valuation at nearly $32 billion.
FTX acquired Blockfolio, a cryptocurrency portfolio tracking app in August 2020 for $150 million.
FTX filed for Chapter 11 bankruptcy in the United States on November 11, 2022, due to a liquidity crisis and mismanagement of customer funds.
It was also announced that Sam Bankman-Fried would be stepping down as CEO amid accusations that he transferred user-deposited funds worth $10 billion from FTX and to his hedge fund Alameda Research to fund operations.
FTX appointed Jon Ray to succeed Sam Bankman-Fried in November 2022.