Uploaded November 2022 | Updated September 2026, 2 weeks ago
Not long after they started the now-bankrupt FTX, an exchange for trading cryptocurrencies, Sam Bankman-Fried and his co-founders decided to make their own virtual currency à la bitcoin.
"There's no reason, if you're in crypto, not to create tokens," says Hilary Allen, a professor at American University Washington College of Law. "You can create tokens out of thin air."
The FTX Token, or FTT as it is more widely known, debuted in 2019, and a couple of years later, the digital currency was valued at a high of almost $80. Today, there are almost 250 million FTX Tokens in circulation.
Not bad for something that is just data.
Although it was a major moneymaker for FTX and helped keep Bankman-Fried's hedge fund afloat, in the end the FTX Token proved to be the company's undoing.
After an article in CoinDesk earlier this month raised questions about FTX's financials, Changpeng Zhao, the CEO of Binance, decided to offload his company's sizable FTT holdings. That spooked investors, and as word spread, the token's value cratered.
#ftx #crypto #ftt #bitcoin #creatornow
Not long after they started the now-bankrupt FTX, an exchange for trading cryptocurrencies, Sam Bankman-Fried and his co-founders decided to make their own virtual currency à la bitcoin.
"There's no reason, if you're in crypto, not to create tokens," says Hilary Allen, a professor at American University Washington College of Law. "You can create tokens out of thin air."
The FTX Token, or FTT as it is more widely known, debuted in 2019, and a couple of years later, the digital currency was valued at a high of almost $80. Today, there are almost 250 million FTX Tokens in circulation.
Not bad for something that is just data.
Although it was a major moneymaker for FTX and helped keep Bankman-Fried's hedge fund afloat, in the end the FTX Token proved to be the company's undoing.
After an article in CoinDesk earlier this month raised questions about FTX's financials, Changpeng Zhao, the CEO of Binance, decided to offload his company's sizable FTT holdings. That spooked investors, and as word spread, the token's value cratered.
#ftx #crypto #ftt #bitcoin #creatornow
