CoinFLEX Launches Physically Delivered Crypto Futures Exchange

CoinFLEX has announced the launch of a physically delivered cryptocurrency futures exchange for its Asian clients.

As per the February 20 announcement, the exchange will offer futures contracts on Bitcoin, Bitcoin Cash, and Ethereum with a 20 times Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term.

In a detailed Medium post, the Hong Kong-based exchange's CEO Mark Lamb detailed the difference between a traditional futures exchange and a crypto futures exchange. He explained that in a traditional setup, a minimum of two, or in some cases three or four intermediaries, are involved between the exchange and the customer. Moreover, the futures brokerages and Futures Commission Merchants (FCMs) usually stipulate the offerings to high net worth individuals or professional traders.

However, in the case of a crypto exchange, the process is simplified with the elimination of all the middle players.

“I fell in love with bitcoin because it’s peer-to-peer, open, and transparent,” Lamb noted. “Everyone has the chance to transact on the same network. Anyone who has the tools can run a node and I won’t reject your Proof of Work because you come from a different country, don’t speak my language, or don’t meet a government-set ‘capital requirement.’”

Explaining the structure of the futures instruments, he stated: “Crypto derivatives are built in the same fashion as bitcoin. Virtually anyone can sign up regardless of wealth, geographic location, or whether or not he or she has a bank account.”

CoinFLEX is a spin-off from the UK-based cryptocurrency exchange Coinfloor. The Seychelles-incorporated exchange also attracted some notable names as its promoters including Trading Technologies International, Dragonfly Capital Partners, and crypto trader Mike Komaransky.

The exchange claims that it is the first crypto exchange to offer physical delivery of the contracts which will reduce the risk of cash price settlement risk. As mentioned on its website, the platform has kept the taker fee at 0.03 percent with 99 percent multi-signature Cold Storage Cold Storage Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Cold storage is a computer system or mode of operation that is designed for the retention of inactive data, in this case private keys for cryptocurrencies. This helps put up resilient barriers against theft by hackers and malware, and is often a necessary security protocol especially dealing with large amounts of Bitcoin.In order to “own” a cryptocurrency, one must be in control of a cryptocurrency’s private keys. As such, private keys are long strings of random characters that can be used to se Read this Term.

Will Asia Follow the US Trend?

Although there is significant demand for crypto futures in the Asian market, it is drastically declining in the United States. Earlier this month, Finance Magnates reported that Bitcoin futures issued by CBOE and CME Group in the US had registered lowest trading volume in December since its launch.