The team behind FTX is made up of some of the largest cryptocurrency traders in recent years who, having encountered problems with most of the major cryptocurrency futures exchanges, decided to launch their own platform. FTX claims that it stands out due to features such as recovery prevention, a centralized collateral pool, and universal stablecoin settlement.
As far as recovery prevention is concerned, a significant amount of client funds on other derivatives exchanges have been claimed for socialized losses. FTX reduces this by using a three-tier settlement model.
On existing crypto futures exchanges, collateral is fragmented into separate token wallets – this can be difficult for traders, as it prevents positions from being liquidated. On the other hand, FTX derivatives are settled in stablecoins and require only a universal margin wallet.
Sam Bankman-Fried is the co-founder and CEO of FTX. In addition, he is the executive director of Almeda Research and worked as director of development at the Center for Effective Altruism. He was also a trader at Jane Street Capital from 2014 to 2017.
- FTT touched $85.74 at the beginning of September, but quickly fell back.
- The FTX CEO spoke a few hours ago at the Bloomberg Crypto Summit event.
Technical Analysis of the FTT Token
The FTX Token has been curbing the downtrend dramatically, these values have been on the rise for weeks, the moving average of 9 has already crossed to that of 50 which before a confirmation we could expect a continuation to the upside. The dynamic resistance level was broken, we could have a continuation upwards to the 40 zone if confirmed. The RSI is at the upper limit of the dynamic trend, we would expect bearish correction at the technical level.
In the crypto market everything depends on BTC (Bitcoin), a rise in BTC would confirm our forecast on FTT for the coming weeks. BTC has broken the upper limit of the range started on June 17. We could wait for a retest at the broken level and then go, gaining momentum to return to the upside.
Bearish possibility on the horizon
It should not be ruled out, after all, these are projections based on the information we have so far, in the face of new information, this re-testing at the maximum of the range pushing upwards could be canceled, continuing with the downtrend. Always putting good risk management before us, the worst scenario in this market is that the opposite of what has already been said happens.
It will be then, at the end of July, before a new meeting of the Fed, which could:
- Aggressive conditions for the markets have been established, invalidating our previous analysis.
- The war in Ukraine could escalate.
This content has been generated by Matías Colloso, Professor at the CBA Crypto Trading academy and Member of the Córdoba Bitcoin community. You can follow him on his LinkedIn.