FTX Token (FTT): tokenomics, risks and score
The exchange token of FTX, whose collapse in November 2022 was the largest fraud in the sector's history and whose founder is serving a long prison sentence.
What FTX Token is, and what it does
This asset has failed. It is recorded here so that a search returns what actually happened rather than promotional material that is still online.
What the FTT token itself does: It captures no protocol revenue. Any value rests on governance rights, on speculation, or on a change that has not happened yet.
Where it runs: Ethereum and Solana. Mechanism: Exchange utility token. It has been running since 2019, so roughly 7 years.
The facts
- TICKER
- FTT
- SECTOR
- Failed and defunct
- CHAIN
- Ethereum and Solana
- LAUNCHED
- 2019, so around 7 years of operating history
- MECHANISM
- Exchange utility token
- MAXIMUM SUPPLY
- 352 million
- VALUE CAPTURE
- None
- UPGRADE CONTROL
- Team controlled
- VESTING
- Complete
- LIQUIDITY BAND
- Micro cap. Thin, often a single venue or pool. Treat the quoted price as indicative only.
How the score breaks down
Each dimension is explained on the directory page, and the reasoning behind it is taught in the Academy research process.
Supply and value capture
A hard maximum supply that cannot be raised without the agreement of essentially every participant. The token captures no protocol revenue. Any value rests on governance rights, speculation, or future changes that have not happened yet.
The founding team retains control over upgrades or parameters. Ownership is heavily concentrated. A small number of wallets hold enough to determine the price on their own.
Where it is strong and where it is not
- None. The issuing exchange collapsed in fraud in 2022.
- The issuing exchange collapsed with roughly eight billion dollars of customer funds missing
- The token was central to the fraud that caused the collapse
- The founder was convicted and sentenced to twenty five years
- Any remaining value is a bankruptcy claim rather than an investment
Incident history
FTX collapsed after revelations that its affiliated trading firm was heavily reliant on FTT it had helped create. Roughly eight billion dollars of customer funds were missing.
The founder was convicted on seven counts of fraud and conspiracy and sentenced to twenty five years in prison.
Our read
The main risk
The exchange collapsed in fraud. This token has no ongoing business behind it.
Before you buy anything
Check the contract address against the project's own documentation rather than a search result or a screener link, since impersonation tokens with identical names and logos are listed constantly. Check the order book depth before assuming you can exit at the quoted price. And write down what would make you wrong before you buy, not after. The Academy thesis module covers why that single habit protects more capital than any indicator.