FTX Full Story-3| FTX Exchange : The FTX Scam
FTX- Capital Arrangements and Management
In terms of leadership, FTX and FTX US share personnel. Sam Bankman-Fried was identified as CEO and co-founder Gary Wang was listed as CTO in both companies.
In January of 2022, FTX raised $400 million in Series C venture capital funding at a $32 billion valuation. Temasek, Paradigm, the Ontario Teachers’ Pension Plan Board, New Enterprise Associates, IVP, SoftBank Vision Fund 2, Lightspeed Venture Partners, Steadview Capital, Tiger Global, and Insight Partners were among the investors who took part. All of the investors in that round of investment contributed to FTX US’s $8 billion valuation during a concurrent series A funding round.
Collaborations with Famous People- The FTX Scam
The parent firms of FTX and FTX US recruited Golden State Warriors point guard Stephen Curry to a long-term promotional agreement in September 2021, giving the NBA star an equity position in FTX as part of their marketing activities.
Similar companies announced a long-term promotional collaboration with Kevin O’Leary, a venture capitalist and television celebrity, in August 2021, with the “Shark Tank” presenter receiving bitcoin compensation and stock holdings in FTX and FTX US.
FTX “is thrilled to partner with the world’s most exciting teams, properties, and heroes of their profession to increase crypto education, involvement, and community impact,” as stated on the company’s website. Major League Baseball, FTX Arena, the Miami Heat, Shaquille O’Neal, and FTX Field are all partners as of September 2022. (University of California-Berkeley).
Compare & Contrast: FTX Exchange
Pros of the FTX exchange System
When compared to other cryptocurrency exchanges, FTX’s trading fees were competitive. The exchange promoted itself by saying it allowed trading in hundreds of different coins and tokens, had an innovative trading platform, and had a mobile app.
FTX’s high-volume exchange customers were eligible for a number of benefits under the VIP Program. Taker fees, for instance, were 0.0375% for VIP 1 entities (with a combined volume of 0.1% of exchange volume). VIP7 (at 2.5% of total exchange volume) would further cut taker costs to 0.025 percent. To a lesser extent, market makers too had a tiered structure.
When these organisations have FTT, they also get additional benefits. When you hold $10,000 in FTT, you get a 15% reduction on fees, and when you hold $100,000 in FTT, you get a 25% discount.
In order to promote their services, FTX provided each user with a personalised affiliate link. Depending on the amount of FTT staked, the referring user receives a percentage of the new user’s fees (25-40%) when the new user signed up via the affiliate link. More than that, they were reimbursed for 5% of their costs. FTX might give extra money to users based on how many people they referred or how much business they brought in.
The Downsides of FTX Exchange- The FTX Scam
There were a number of potential problems with the exchange even when it was at its peak. Users of FTX were urged to submit support tickets if they needed assistance, however alternative exchanges may be more suited for people who prefer more personal support options like live chat. U.S. citizens were also barred from using the FTX worldwide platform. U.S. citizens were required to utilise FTX US due to government restrictions.
Newcomers to the trading world may find FTX’s interface or feature set daunting, despite the fact that it provides a wide variety of trading goods. While FTX may not have been the best choice for newcomers to the trading world, it was widely regarded as a top choice among professionals. Despite FTX’s claims of having low trading fees, competing exchanges often offered even lower rates.
What Effects Did FTX Have? The FTX Scam
FTX was an exchange for digital assets that facilitated trading and increased the value of cryptocurrency. With FTX, users may link their wallets, trade, exchange digital currencies, enter into derivative contracts, and purchase and sell NFTs.
Why Can’t We Have FTX Here in the States? The FTX Scam
Traders from the United States were not allowed on FTX. It was a reaction to government oversight that was too restrictive for the cryptocurrency market. The FDIC issued a cease and desist letter to FTX US in August 2022, alleging that the company may have violated the FDIC Act by making false and misleading assertions.
Final Thoughts- FTX Exchange : The FTX Scam
FTX was a popular platform for exchange, selling, and trading cryptocurrency derivative contracts. Trading in NFT and collectibles was also encouraged by FTX. The company allowed traders all over the world to exchange hundreds of digital currencies for relatively low fees; however, it was unavailable to residents of the United States due to cryptocurrency regulation. Eventually, (The FTX Scam )the company went bankrupt, was hacked, the CEO resigned and was sued, and investigations into the exchange as a Ponzi scheme began.
Latest News on FTX Scam
Singapore police warn investors against FTX phishing scams: Report By Cointelegraph