InsideBitcoins.com

FTX Launches Equity Token Sale Available For Purchase Through Crypto

New Market Manipulation Class Action Lawsuit against FTX Trading & Alameda Research

The FTX crypto derivatives exchange has launched its equity token today. One token represents an ownership stake within FT Trading Ltd, the company that owns FTX, and is based within Antigua.

$2 Equity Tokens Selling in $250,000 Bundles

As it stands now, a single equity token costs just a measly $2. However, the minimum size of purchase for these tokens stands at an impressive $250,000. This comes from the announcement that FTX had done on Tuesday this week. Depending on the supply and demand for these tokens, the sale of said tokens is expected to end anywhere between the 1st to the 7th of March.

Sam Bankman-Fried, the CEO of FTX, explained that the equity token serves as a way for small-scale investors to gain a stake at the company as well, albeit small as it is. Through standard means, the minimum purchase size for a stake in FTX clocks in at a staggering $2.5 million.

Aiming For $30,000 In Funding

It’s just been a week since it became clear that FTX was aiming to raise money through equity. The company is currently seeking an impressive $30 million in an equity round, valuing their company at an even $1 billion. As this information would suggest, the equity token sale holds a soft cap of $30 million. As Bankman-Fried told the press, the hard cap for this sale is estimated to go just past $50 million.

Bankman-Fried was quick to specify, however, that there is no maximum investment cap when it comes to small-scale investors.

Terms and Conditions Apply

As one would expect, FTX’s equity tokens have a long list of terms and conditions attached to it. First off, these tokens are not tradable on any of the exchanges, nor is it withdrawable. FTX was quick to state that it is “strongly” considering allowing the trade of the token in the next few years. However, it should be noted that the trading of this equity token would require licensing from a range of jurisdictions.

The following specification is that these tokens don’t allow for the same voting rights that equity shares properly enjoy within FT Trading Ltd. The last specification is that ownership of the token does not provide ownership over the FTX exchange itself. It further doesn’t grant ownership over potential white labels of FTX, nor any leveraged tokens. Further denial of ownership stretches towards the “utility token” of FTX, FTT, as well as any potential operation outside of the US’s borders.

Top brokers for buying and trading cryptocurrencies

  • Platform
  • Features
  • Rating
  • Visit Site
  • US-Friendly
  • Paypal accepted
  • 12+ cryptocurrencies
4.5/5

Visit Site
75% of retail investors lose money.
eToro Reviews

    eToro Reviews

    https://insidebitcoins.com/visit/etoro-newsCreate your account
    Hide eToro Reviews
    • Best broker for non-US countries
    • Trade crypto CFDs, forex and stocks
    • No withdrawal or deposit fees
    4.5/5

    Visit Site
    80.5% of retail investors lose money.
    Plus500 Reviews

      Plus500 Reviews

      https://insidebitcoins.com/visit/plus500-newsCreate your account
      Hide Plus500 Reviews
      Remember, all trading carries risk. Past performance is no guarantee of future results.
      Avatar

      A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.