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Hong Kong-based currency cryptocurrency exchange (CoinFLEX) has announced that it will provide cryptual currency futures contracts to Asian investors as of February 2019.
CoinFLEX was launched in February 2018 as CoinfloorEX, a division of Coinfloor, the oldest British Bitcoin exchange. However, the company has now announced that it will separate from its previous parent company.
The new platform is co-owned by its parent company Coinfloor and major industry investors such as Bitcoin Cash Evangelist Roger Ver, B2C2, Dragonfly Capital, Trading Technologies, Mike Komaransky and others.
New futures contracts
CoinFLEX is set up to launch future contracts for Bitcoin (BTC), Ethereum (ETH) and Bitcoin Cash (BCH), with a leverage of up to 20 times.
Physically delivered futures contracts, such as those offered by CoinFLEX, are advantageous because their values are tied to the underlying asset. This means that at the end of the contract the owners of the contract will be offered the asset, as opposed to the fiat currency payment. The advantages of the compensation mechanism chosen by CoinFLEX is that it generates transparency because the process can not be manipulated. This transparency will surely increase confidence in the encrypted market, which still suffers from regulatory uncertainties.
Speaking in an interview with Bloomberg, CoinFLEX CEO Mark Lamb said:
"Cryptographic derivatives could become an order of magnitude bigger than the spot markets and the main thing that would stop the growth is the lack of physical delivery.The volumes are reduced due to a problem of trust when it comes to regulated transactions cash ".
Lamb added that the current daily trading volume on the market is pegged at $ 3 million, but there is greater potential for growth.
Growing package
With its upcoming offer, CoinFLEX joins Bakkt, the Chicago-based cryptography exchange supported by Intercontinental Exchange, the parent company of the NYSE. Bakkt announced that it would launch its physically-issued futures contracts for investors in the United States.
Bakkt raised $ 182.5 million for New Year's Eve from a consortium of high-profile investors, approaching the launch of its Bitcoin futures market in the first quarter of 2019.
Shutterstock foreground image.
