The cryptocurrency derivatives platform FTX is now selling an FTX Equity Token (FTX_EQUITY) to its users that do not reside in the United States or other prohibited jurisdictions.
FTX Equity Token represents an ownership stake in the Antigua company FTX Trading Ltd. that owns the FTX crypto trading platform. Each of these tokens costs $2 and represents 1 part in 50,000,000 interest FT tokens, “in line with a $1b equity valuation for FT.”
“Yet another case of the value prop for the token being an implied pseudo security and then when push comes to shove there’s nothing there,” said Nic Carter, co-founder of Coin Metrics.
The minimum purchase size of these tokens is $250,000 that will get you 125,000 FTX_EQUITY tokens, unlike the standard FT equity shares’ which is $2,500,000.
Same Economic But Not Voting Rights
As per the official announcement made today, owning these tokens confers the same economic rights as owning the equity shares of FT tokens. These new tokens can also be traded up into equity shares of FT in 1,250,000 lots or more.
Although the same ownership rights as FT, FTX_EQUITY does not have the same voting rights as FT.
Currently, these tokens are not tradeable on FTX or any other platform, however, the company will “strongly consider” allowing FTX_EQUITY to trade in the next few years.
Making the Purchase
If you are at least KYC level 2 FTX users — which requires more than just email, name, and country of residence and region/province — you can start purchasing FTX_EQUITY in your FTX wallet starting now till March 1st/March 7th, 2020.
To make the purchase, you have to go to your FTX wallet, search for FTX_EQUITY, click CONVERT and enter the desired amount that must be more than $250,000. You can purchase the token with BTC, USD, FTT or any other tokens while FTT being the native token of FTX platform, the exchange offers a small bonus for purchasing with FTT.
Next, you have to agree to the Token Purchase Agreement and Equity Token Terms and then complete the purchase by clicking CONVERT.
Back in December, Binance made a strategic investment and listed FTX Token on its platform. For the investment, it received a portion of FTT whose “vast majority” Binance said would be locked for over two years.
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