A new physically settled futures offer has been announced by crypto derivatives exchange, CoinFLEX. According to reports, the entire offer will be predicated on betting on the high or low likelihood that Facebook’s digital currency, the Libra, will launch before 2020 ends.
CoinFlex has announced its initial futures offering (IFO) which will take place on the 24th of October. The futures will be settled only in Libra, on the assumption that Facebook pulls through all the regulatory problems it currently faces. The offering will begin at 30 cents, which will directly stake a 30% chance that the Libra will go live latest by Dec. 20, 2020. Since the futures are to be delivered in Libra, if the Libra never sees the light of day, then investors will have to forfeit their stakes and investment. Traders will however also be able to bet against the Libra launch.
According to CoinFlex chief executive officer, Mark Lamb, the launch of the Libra is expected to do wonders not just for the cryptocurrency sector, but also as a breath of fresh air, for the current banking and financial clime. Lamb says that the prospect of that in itself, might be a problem for Facebook.:
“Facebook has the ability to rival the entire banking system from day one, but, because of that fact, when that first day will be is far from certain. The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.”
The Facebook project recently took a hit when PayPal announced its withdrawal from the Libra Association, probably due to regulatory frustration.
Image Credits: Pixabay
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