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Cryptocurrency Derivatives Exchange Firm FTX is Selling its Equity

Yvette Mwendwa by Yvette Mwendwa - 12:51 PM Feb 25, 2020
Cryptocurrency Derivatives Exchange Firm FTX is Selling its Equity

Crypto derivatives exchange firm FTX announced today that it has launched its equity token, which can be purchased using Bitcoin or any other payment methods. The equity tokens which go at $2 each, represents an ownership stake in FT Trading Limited, which owns FTX.

In addition, as per the announcement, each equity token is worth $2 and one can purchase a minimum of $250,000. Depending on supply and demand, the sale of the equity tokens is expected to come to a halt between March 1 and 7. According to the firm’s CEO, Sam Bankman-Fried, the equity tokens allow small investors; to own a stake in the firm, as the original minimum purchase size is $2.5 million.

Moreover, reports last week claimed that the derivatives exchange firm was seeking to raise up to $30 million in an equity round valued at $1 billion. Nevertheless, according to Bankman, the soft cap is at $30 million but the hard cap could even top $50 million. Regardless, he added that there is no maximum investment cap for small investors.

A Closer Look to the FTX Equity Tokens

Moving forward, FTX has issued some guidelines and terms and conditions for investing in the equity tokens. Particularly, the FTX equity tokens are currently not tradeable on any exchange platform. Additionally, they are not withdrawable either. However, FTX has claimed it is strongly exploring the possibility of trading the tokens over the next couple of years. Trading requires licensing and a variety of jurisdiction, hence it is so unlikely for the token to trade.

Furthermore, the FTX equity tokens do not grant the investors; similar voting rights as the equity shares in FT Trading Ltd. Users are strongly advised to read all the user agreements well before purchasing to avoid misunderstandings. The tokens can be bought using the FTX wallet and the supported payment methods include .S. dollar, bitcoin (BTC), FTT and various other tokens.

About The Author
Yvette Mwendwa

Yvette MwendwaI'm a believer in decentralization. An enthusiastic author, web geek & writer with experience writing for tech, digital, and cryptocurrency blogs.

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