Hong Kong Based Crypto Exchange CoinFLEX to Offer Bitcoin Futures with 20x Leverage
Hong Kong-based crypto exchange Coin Futures and Lending Exchange (CoinFLEX) has declared it will be providing futures for cryptocurrencies to Asian traders from February 2019.
CoinFLEX was started in February 2018 as CoinfloorEX, a branch of Coinfloor, the earliest British Bitcoin exchange. On the other hand, the partnership has announced it will be breaking away from the former parent company.
The new platform is co-owned by its parent firm Coinfloor and noteworthy industry investors like Bitcoin Cash Evangelist Roger Ver, B2C2, Dragonfly Capital, Trading Technologies, Mike Komaransky, along with many others.
CoinFLEX is defined to commence prospective contracts for Bitcoin (BTC), Ethereum (ETH) and also Bitcoin Cash (BCH), using a leverage chance of around 20 times.
Physically delivered futures contracts, like the ones provided by CoinFLEX, are valuable since their values are closely tied into the underlying asset. This implies that upon expiration, contract owners will be given the advantage, instead of payment from fiat currency. The benefits of CoinFLEX’s chosen reimbursement mechanism is the fact that it breeds transparency since the process can not be manipulated. This transparency is guaranteed to engender more confidence in the crypto marketplace that still suffers from regulatory doubts.
“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. Volumes are reduced because of a problem of trust when it comes to cash-settled trades.”
Lamb added that the present daily trading volume on the sector is pegged at $3 million, however there’s more potential for expansion.
Using its forthcoming offering, CoinFLEX joins the likes of Bakkt, the Chicago-based crypto exchange endorsed by Intercontinental Exchange, the parent firm of the NYSE. Bakkt, declared it would be launching its physically delivered futures contracts for investors from the USA.
Bakkt increased $182.5 million on New Year’s Eve from a consortium of high profile investors, as it edges closer to the launching of its Bitcoin futures market in first quarter of 2019.