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How does a FTX token like this work? How is it funded? I noticed most purchases started at around $0.30, so if he had indeed won, how would this token have yiel
by winter_blue 4y ago
How does a FTX token like this work? How is it funded? I noticed most purchases started at around $0.30, so if he had indeed won, how would this token have yielded $1 (as the page says)?
- NoboruWataya 4y agoI was also curious so I went to the "learn more" link[0], but it doesn't really answer the questions and seems rather confused. It describes the token as "a futures contract that expires to $1 if Jair Bolsonaro wins the 2022 Brazilian presidential election and $0 otherwise". Leaving aside the fact that it's not really a futures contract (since it's not an obligation to buy or sell any underlying asset), the implication seems to be that it is a financial obligation issued by some entity, presumably FTX itself though it's not clear. There is also this gem: > FTX retains the final right to interpretation of this contract. FTX will not entertain any objections to this contract’s settlement mechanisms. Attempting to object will result in immediate account closure. FTX may modify the terms at any point. By trading these contracts, you are agreeing to abide by FTX’s interpretations of them. [0] https://help.ftx.com/hc/en-us/articles/360060916172 https://help.ftx.com/hc/en-us/articles/360060916172