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FTT token surges after VISA crypto debit card announcement

By Peter Henn

14:18, 7 October 2022

FTT
FTT has shot up in recent days after it announced a crypto debit card - Photo: Shutterstock

The FTT cryptocurrency, the native token of the FTX crypto exchange, has shot up after its announcement of a cryptocurrency debit card. 

The token, which had traded at a low of $23.91 on 3 October, briefly broke past the $25.60 mark on Friday 7 October before settling down to be worth about $24.80 that afternoon. 

The crypto’s price was boosted after CNBC reported that the payment system Visa was partnering with the exchange to offer the new cards in 40 different countries, with a focus on Latin America, Europe and Asia. 

This rollout will see new countries joining the United States in having the cards available, meaning people will be able to spend their cryptocurrency without taking it through an exchange.

Visa’s CFO, Vasant Prabhu, said: “We don’t have a position as a company on what the value of cryptocurrency should be, or whether it’s a good thing in the long run – as long as people have things they want to buy, we want to facilitate it.”

XRP/USD

0.62 Price
+3.030% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.13 Price
-1.010% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

ETH/USD

3,344.71 Price
-4.060% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

SOL/USD

178.53 Price
+2.290% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

Visa has already announced partnerships with the Coinbase (COIN) and Binance (BNB) crypto exchanges. 

Sam Bankman-Fried, chief executive of FTX, said he thought that the launch was “more valuable” across the world than in his native US, adding: “That’s where you’ll find places with really poor alternatives for payment rails and huge demand for something better.”

Bankman-Fried acknowledged that, for some, the partnership between a crypto exchange and a traditional payment provider might seem a little strange, adding: “It’s a technology that we absolutely see disrupting traditional payment networks.

“There’s a decision you have to make as a traditional payments company: do you want to lean into this or do you want to fight against it? I respect the fact that many of them are leaning into it.”

Markets in this article

BNB/USD
Binance Coin / USD
581.92 USD
-5.89 -1.010%
COIN
Coinbase Global Inc (Extended Hours)
245.86 USD
-12.93 -5.000%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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