Coinfloor cryptocurrency exchange will be offering Bitcoin contracts to Asians in February, reports Bloomberg on January 6. This will be made possible by taking advantage of a new platform where futures contracts for Bitcoin, Ethereum, and Bitcoin Cash will be offered. Each of these will have up to 20 times leverage.
Coin Futures and Lending Exchange Breaks From Parent Company
The new platform has been called Coin Futures and Lending Exchange and abbreviated into CoinFLEX. This is a unit of the Bitcoin exchange, Coinfloor which is based in the UK which began last year. The company was later renamed from CoinfloorEX to its current name CoinFLEX.
Based on reports, this exchange is bound to bring about competition with other virtual currency exchanges in Hongkong who also offer Bitcoin futures. One of such is Intercontinental Exchange Inc., who has decided to launch a venture alongside its currently existing one known as Bakt. The same can be said about BitMEX, a cryptocurrency exchange whose contracts are already leveraging up to a 100.
Contracts to Be Used to Trade Against Tether
The contracts from CoinFLEX will be used to trade against Tether, a stable coin that is pegged to the dollar. As a result, investors who get short at the time of expiry will have to exchange their Bitcoin for Tether and on the long run, exchange Tether for Bitcoin. Reports reveal that this is different from cash-settled contracts where gains or losses are paid on exchanges using dollars or Bitcoin.
Tether, on the other hand, has faced a lot of controversy of recent and one of such, is if the amount of tokens in circulation is backed by the same amount of dollars which has been held in reserve. This is a claim made by the token’s founders, and there are still fears lurking in people’s mind as to how true that is.
CoinFlux is Co-owned By Reputable Members of the Crypto Industry
More details into the transaction reveal that CoinFLEX is co-owned by Roger Ver, a crypto enthusiast as well as Trading Technologies International Inc. Also, other market players backing up this project are Mike Komaransky, a crypto enthusiast, Dragonfly Capita, an investment banking firm, and Grapefruit Trading, a company that provides liquidity in cryptos.
The chosen cryptocurrencies which have been chosen are currently having an upward price trend judging by the data provided by coinmarketcap.com. As at press time, Bitcoin is trading at $4,029.29, Ethereum at $153.39, and Bitcoin Cash at $163.04. While Bitcoin and Ethereum have maintained the top two positions, Bitcoin cash has maintained the fourth position.