Ethereum is Bitcoin’s biggest competitor and, subsequently, a name that many crypto enthusiasts know all too well. In recent years, the FTX token has gained a lot of notoriety for a number of reasons.
In this article, we’ll give you a breakdown of how Ethereum and FTX tokens compare.
History
Ethereum
Ethereum was founded in 2015 by Bitcoin enthusiast Vitalik Buterin. Buterin sought to create a blockchain that functioned as more than a payment system and thus wrote a whitepaper outlining his vision and the way it would function.
Buterin then launched a crowdfunding campaign in 2014 so that Ethereum could enter the crypto market.
FTX Token
The FTX exchange was founded by Zixiao Wang and Sam Bankman-Fried in May 2019. The venture was funded by Alameda Research, Bankman-Fried’s trading firm, which he founded with Caroline Ellison and other individuals.
FTT token was launched privately in July of the same year, with an initial supply of 350,000,000. Late 2022 saw the FTX collapse $477 million in crypto assets being drained from the FTX exchange by cryptocurrency traders following a fraud-related scandal. The year also saw Bankman-Fried resign from his position.
What Are They, And Why Were They Created?
Ethereum
Ethereum is a peer-to-peer platform that uses blockchain technology to facilitate smart contracts and crypto trading without a third party. Besides crypto trading, It was created as a way to help developers deploy decentralized apps.
FTX Token
FTT token is a utility token that provides access to the FTX trading platform’s services and features. It’s also the native token of the FTX exchange. FTT token creates utility in the FTX ecosystem by encouraging users to hold and use the FTT tokens.
FTX claims it differs due to offering features such as clawback prevention, which is designed to prevent liquidation losses. Its algorithm gradually liquidates positions without decreasing the net asset value below zero.
FTT token was created as a means of providing traders with a way to save on trading fees. According to its model, the more FTT tokens users hold, the greater the discount they’ll receive. This model also means that users can benefit from having no withdrawal fees on the FTX platform.
Price History
Ethereum
Ethereum is considered to be relatively volatile, having seen its fair share of fluctuations over the years. At the time of writing, one Ethereum token is priced at $1,225.90. It peaked in 2021 when a single token cost $4,878.26. Its all-time low was $0.432979 per token. Ethereum’s trading volume has seen significant decreases in the past year.
FTX Token
Naturally, FTT token’s lowest price came the year it was launched, when one token cost $1.15. It reached its all-time high in 2021, when one token was worth $84.18, marking what had been a steady increase in the token’s value. At the time of writing, FTT tokens are priced at $1.38 per token.
Even prior to the FTX scandal, FTT token was known to be quite volatile, and it’s currently highly volatile.
Market Cap
Ethereum
Ethereum is in second place in terms of market cap, behind Bitcoin. It has a market cap of $147 billion. Its market cap dominance is slightly over 16 percent.
FTX Token
At the time of writing, the FTX token has a market cap of $455.8 million and a market cap dominance of 0.05 percent.
Daily Transactions
Ethereum
At the time of writing, Ethereum averages around 1 million transactions a day. It reached an all-time high in terms of daily transactions on May 9, 2021, when there were 1.7 million transactions.
FTX Token
As you may have guessed, the number of daily FTX transactions has reduced significantly following the FTX scandal. While there isn’t much data on FTX’s transaction numbers, it experienced a peak in October 2022, when there were just over 13 000 transactions in a single day. At the time of writing, it averages just over 300 transactions a day per week.
Block Size
Ethereum
Ethereum is blocked by the amount of gas, thus meaning that its block gas limit is its block size. Ethereum blocks are limited to 30 million units of gas.
FTX Token
There are currently no publications that outline FTX token’s block size.
Similarities
- Both tokens can be bought on major cryptocurrency exchanges.
- Users can get free withdrawals for both tokens on certain crypto platforms.
- Both tokens offer other options besides trading.
Differences
- You can mine FTT tokens, but you can no longer mine Ethereum.
- Ethereum has a much higher trading volume than FTT token
- FTX has lower trading fees than Eth.
Risks
Ethereum
Trading Ethereum presents the same level of risk as buying Bitcoin. However, Ethereum’s Merge has created new risks, which include a threat to decentralization, technical difficulties, and risk from an Eth proof of work fork.
FTX Token
Given the scandal that the FTX exchange is embroiled in at the time of writing, investing in it is an immense risk. Some FTX token price prediction advisers, such as the ones at CoinCodex, foresee the price of FTX dropping even further.
To add to this, the structure of the FTX exchange means that a crypto whale could mass sell to tank the price or manipulate it to their advantage.
Where to Buy
Ethereum
Ethereum has been around for nearly ten years now, so it can be purchased from a number of crypto exchanges. Here are some of the places where you can buy Ethereum:
FTX Token
Despite being significantly newer than Ethereum, FTT can be found on quite a number of exchanges. Please note that this may have changed following the FTX scandal, and this doesn’t serve as a recommendation for any cryptocurrency exchange that we list:
Exchanging Ethereum for FTX Token
Exchanging Ethereum for FTX tokens is possible and is a simple matter of finding an exchange that supports the transaction. It’s also worth mentioning that certain exchanges may largely be limited to your country or region.
You can swap Ethereum for these exchange tokens on platforms such as CoinCodex, SimpleSwap, and HitBTC. If your region isn’t supported on any of these platforms, then you’ll probably easily be able to find an alternative.
Exchanging one for the other typically starts with one buying FTX or Ethereum on a cryptocurrency exchange using fiat currency.
Future Plans
Ethereum
Ethereum faces most of the same issues that the FTX platform and other crypto platforms face, scalability.
Scalability largely depends on transaction speed; this is why Ethereum orchestrated “The Merge,” which is essentially an upgraded version of Ethereum. The objective of this is to improve scalability, security, and accessibility.
Other components of Ethereum’s roadmap include sharding and “The Beacon Chain.”
FTX Token
Considering the scandal and plummeting price, the future of FTX token doesn’t look incredibly bright. The future plans of FTT token are tied to the plans and development of the FTX crypto exchange.
FTX launched FTX Ventures in 2022, an initiative that sought to back teams in web3 and crypto development across sectors such as gaming, fintech, and healthcare.
They were also looking for more opportunities to acquire more cryptocurrency exchanges. However, given that the company filed for bankruptcy on November 11, 2022, and that there are investigations around its criminal liabilities, these plans are unlikely to gain much traction.
FAQs
Why is the FTX token dropping?
FTX token has fallen below the affiliate-suggested offer price due to an increase in withdrawals. The withdrawals were triggered after competitor, Binance Holdings Ltd., announced plans to sell all its tokens.
What can you do with Ethereum?
Thanks to features such as smart contracts, Ethereum can be used for a variety of innovative applications. These applications function in a very similar way to standard applications, covering areas such as gaming, finance, web browsing, and supply chain management.
Are NFTs tangible property?
NFTs are not considered tangible property. This means that the IRS can treat and regulate them as collectibles. The IRS could also view some NFTs as works of art. Be sure to exercise caution and do your research when considering investing in cryptocurrencies or NFTs.
What is Ethereum 2.0?
Ethereum 2.0, more widely referred to as “The Merge,” is an upgraded version of the Ethereum blockchain. It uses a proof-of-stake consensus mechanism to verify transactions using staking. The fundamental objective of this is to make blockchain transactions much faster, as cryptocurrencies advancing depends on faster transactions.
What are centralized exchanges?
These are platforms that facilitate the buying and selling of cryptocurrencies. Exchanges can be made for fiat currencies, such as the U.S. dollar, or between digital assets, such as Ethereum and FTX tokens. Additionally, they function as trusted intermediaries in trades and custodians by storing and protecting funds.
Sources:
http://www.omm.com/resources/alerts-and-publications/alerts/nfts-and-taxonomy/
https://linen.app/articles/what-is-ftx-token-ftt-explained-in-plain-english/
https://www.coindesk.com/price/ftx-token/
https://www.cryptoeq.io/corereports/ftx-token-abridged
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