Coinfloor’s CoinFLEX Physical Bitcoin Futures Likely to Compete NYSE’s Bakkt
January 7th, 2019
Back in March 2018, Coinfloor Exchange, one of the famous British cryptocurrency exchange had launched the ‘physically delivered cryptocurrency future exchange’ called CoinfloorEx. However, the recent report indicates that the firm is reforming the name of newly launched exchange from CoinfloorEx to CoinFLEX (Coin Futures and Lending Exchange).
CoinFLEX backed by Industry Leaders
The new exchange, CoinFLEX is backed by renowned names in crypto industry including Roger Ver (CEO of Bitcoin.com), Trading Technologies International, Inc., (Trading software solution firm), Mike Komaransky (Crypto Trader), Dragonfly Capital (an investment banking firm headquartered in Charlotte) and other consortium including B2C2, Global Advisors, Alameda Research, Amber AI and Grapefruit Trading. Besides these players, Coinfloor and their subsidiary companies are also major players. The team is all set and excited to work with these players.
CoinFLEX is set to initiate future contracts for Bitcoin (BTC), Bitcoin Cash (BCH) and Etheruem (ETH) with leverage ration up to 20 times. According to Coinmarketcap, the crown cryptocurrency of the market, Bitcoin is presently trading at the value of $4,070.93, followed by Etherum which stands with $156.46. However, Bitcoin Cash stands at the top fourth position, valuing the total market cap of $2,930,332,502.
Competing With Intercontinental Exchange Inc’s Bakkt
By initiating the future market as the ‘physically delivered future contracts’, CoinFLEX is likely to face stern competition from Bakkt and probable criticism by considering Tether on its platform. To point, Bakkt is a Chicago based derivative market backed by NYSE which has also planned to launch its ‘physically delivered future contracts’ soon.
Nevertheless, the crypto market has few exchanges dealing with future contracts but CoinFLEX makes its offering unique by branding it as ‘the world’s first physically delivered crypto future exchange’. As remarked by Mark Lamb who is Coinfloor’s co-founder and will be heading Hong Kong’s CoinFLEX exchange as the chief executive officer;
‘The futures contracts on the CoinFLEX exchange will be physically delivered’, he said adding that;
“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.”
Moreover, the platform is eyeing on BitMEX exchange which is also based out in HongKong, offering leverage up to 100 times on its limited contracts. With regards to Lamb’s statement, owners of the contract can obtain cryptocurrency of the respective futures instead of a cash payment on the expiry of the contract. Certainly, the other market players offering futures service perceived ‘contract settlement in cash’ could be a manipulative act within the market.