CoinFLEX the Hong Kong-based company is a spin-off of Coinfloor, the UK’s oldest Bitcoin exchange will soon roll out physically-backed Bitcoin, Ethereum and Bitcoin Cash futures.
Partly owned by Bitcoin Cash evangelist Roger Ver and Chicago-based fintech company Trading Technologies International, the CoinFLEX, just launched its website and has plans to offer Asian clients up to 20x leverage on all three cryptocurrencies.
We are excited to announce the launch of our official website ?https://t.co/pw6nXgfoQX
The official launch of the exchange will be coming soon, please stay tuned with us?
Find out more about us at our Telegram community: https://t.co/jpa4dYHLFw
— CoinFLEX (@CoinFLEXdotcom) February 21, 2019
Crypto Community was waiting for the news
The physically-backed futures have crypto community been awaiting such futures that are paid out with the underlying cryptocurrency, instead of cash. CoinFLEX CEO Mark Lamb explains its importance in a recent interview with Bloomberg:
“If you’re trading a cash-settled future, you’re open to manipulation of the index at the time of settlement. If you’re a market maker where you’re doing a basis trade, where you’re arbitraging the cash and spot markets, the cash markets versus the futures market, what you really want to be sure about is, at the time of expiry, you know exactly what you’re going to get…
“With a physically-delivered future, it really ties the future’s price to the actual, underlying asset because at expiry, everyone knows what they’re going to get. Everyone who’s short, delivers Bitcoin, receives cash. Everyone who’s long, delivers cash, receives Bitcoin. So that kind of tying down to the real world allows these types of futures to be used for much more than just speculation. They’re great speculative tools, but they become useful for commercial hedging, hedging miner exposure, hedging and OTC trade, or making markets.”
The physically-backed crypto futures by CoinFLex will soon be joined by Bakkt, a crypto trading platform by Intercontinental Exchange, owner of the New York Stock Exchange. The platform is currently awaiting approvals from the regulator.