While Binance confirms its superpower over all its competitors, another giant is well on its way to becoming one of the most used centralized platforms: FTX! Between the arrival of its bank card (small article, it’s a gift), the constant addition of tokens to trade or specific contracts, the platform does not stop growing. Today, we are going to analyze its token FTT, because we are here to make technical analysis, not to judge the quality of the platform!
Disclaimer: This article does not constitute investment advice or an invitation to invest. It is strictly for informational purposes only. You are solely responsible for the trading and investment decisions you make.
Analysis of FTT tokenomics
The best possible point for a cryptocurrency is to exist in limited quantity. Indeed, a currency that doesn’t have a burn mechanism or that doesn’t exist in a limited quantity is often doomed to failure.
If you have any doubts, just take the example of traditional currencies. You will certainly understand that a continuous printing, without a burn function, leads to a constant increase of the available quantity of this currency and therefore to a progressive loss of its value (basically you will have a hard time with your purchasing power).
Here no surprise, the number of token is limited, which is a good point. But moreover, if we go and look in the presentation of the project, we can see that a burn mechanism exists! Indeed, when you use the platform to buy/sell, you pay a fee.
Now, 1/3 of these fees will allow you to buy FTT and to burn it afterwards (note: this is only true until 50% of the token is in circulation, after that there will be no more burn). Thus, this system will participate in a natural increase of the price by the increase of the scarcity.
Moreover, the token can be used on the platform to reduce taxes, or in stacking to have the right to better conditions of use of the platform or even to be used as collateral!
Tokenomics and the uses of the token seem to be well established, now it’s time for the graphical analysis.
The chartist analysis of the FTT
You should be well aware that most cryptocurrencies have literally been shattered by the ongoing bearmarket. The useless currencies are starting to sink into the abyss of some people’s memories and others are disappearing completely. But, the useful ones like $FTT continue to survive.
The FTX token has not said its last word, unlike many altcoins. In fact, it has “only” fallen by 72% since its ATH.
That may sound like a lot, but in reality, it’s not much compared to all the other cryptocurrencies.
There are two very interesting points about the current position of FTT.
- It has entered the long-term reload zone, meaning it is below the 0.618 Fibonacci, located around $33.
- It is on very interesting support which I have shown in green on the chart above.
Note: If you’re having trouble understanding these concepts, it’s time to read our guide to long-term purchasing.
Indeed, we can see that this support is the area that has been used as a rebound each time. What does this mean? It’s simple, big fish are constantly buying FTT token between $21 and $23.
Do you want to buy with the whales? It’s up to you, but I think it’s better to buy with them than to buy when they sell.
So you got it, the token is graphically in an interesting area for a long term buy. Let’s move on to its dominance.
Centralized platforms like FTX or Binance have a token that has been able to collapse, but not too much! Why? Because their site continues to be used. Thus, their token has a real use.
For FTT, we can even see that it continues to dominate Bitcoin. Yes, even during this Bearmarket!
If we go on and compare it with all altcoins, except ETH and BTC :
We can still see that the price is increasing compared to the overall MCap of all the tokens out there (apart from BTC & ETH). This bodes very well for the future of the token in the crypto ecosystem!
FTX’s FTT seems to be a complete token, from its various uses on the platform, its tokenomics or its current position on the global market.
For a long term buyer of FTT, it would make sense, graphically, to be positioned as a buy. Also, its dominance over the overall market seems to be growing and this could allow it to gain market share where Binance is, for now, the big winner.
I sense you noticed that I didn’t mention selling prices! I don’t, because it’s not for tomorrow. But, if we look at its position in the overall market (24th) and imagine it at least in the top 10, or even in the place of Binance, then we can set price targets.
To get into the top 10, its Marketcap would have to be multiplied by 3. With the same number of tokens as today, we would have a selling price at ~$60.
To compete with Binance’s BNB, we’d have to push much harder. Here we would need a x14-15 and we would have a token at $322. A very distant target, maybe too high? Who knows…
Finally, I want to make it clear, but this article is not intended to promote the platform or its token, nor is it a sponsored article by FTX on Coinpri. We will be launching a token analysis section soon and FTX was the warm up. Until the next one, I encourage you to read our guides on how to define your investor profile and how best to invest to continue your education. Have a good weekend.
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.