Exchange Offering Physical Bitcoin Futures to Rival BitMex

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U.K.-based exchange CoinFLEX plans on offering physically delivered bitcoin futures that can be leveraged up to 20 times, a move that will make them a major competitor to giants such as the New York Stock Exchange and Eris Exchange.

According to the report, CoinFLEX, a former unit of Coinfloor, a U.K.-based bitcoin exchange, will provide derivatives on some of the largest cryptocurrencies on the market to Asian retail investors.

Founded in 2017 as CoinfloorEX, the company is a venture by Roger Ver, the CEO of Bitcoin.com, leader head behind Bitcoin Cash, and Trading Technologies, a broker software manufacturer.

Mark Lamb, the co-founder of Coinfloor, which will retain an equity stake in CoinFLEX, will take charge as the company's CEO and lead the company from its new HQ in Hong Kong.

The company will have unique leverage over the competition-all of the futures issued on CoinFLEX will be physically delivered, Lamb said in an interview.

"Crypto derivatives could become an order of magnitude larger than spot markets and the main thing that's holding back that growth is the lack of physical delivery," Lamb told Bloomberg.

With many investors saying that settling bitcoin futures in cash is an easily manipulated process and that introducing a trustless system could make futures volume up to 20 times larger.

CoinFLEX plans on making a large bet on Tether as part of its futures offering at the beginning of February.

The exchange's contracts will trade against Tether, meaning that short bets made in bitcoin will receive Tether and vice versa.

Another contract to trade Tether against USDC will be introduced, Lamb revealed, saying that the company was "Confident in using it" due to its volume and liquidity.

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