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Bitcoin: Is China a projection of the future in the US?

The Hong Kong company will offer physical Bitcoin, Ethereum futures (with leverage!)

According to a recent Bloomberg article, the “contest” for physically delivered bitcoin futures is heating up, as another contender has entered the contest. This new competitor is a new cryptography company based in Hong Kong called CoinFLEX, formerly a branch of Coinfloor in the US. UU

Projection of CoinFLEX

CoinFLEX allegedly seeks to offer physical futures contracts for Bitcoin, Bitcoin Cash and Ethereum with up to twenty times the leverage. These contracts are supposedly linked to Tether (USDT), a controversial but necessary move for the single settlement system of CoinFLEX.

For those not initiated in the world of derivatives, physical (physically backed) means that when the contracts expired, their owners will receive the stipulated asset, instead of the cash equivalent. Lamb expressed the importance of physical derivatives in a recent interview with Bloomberg:

Cryptographic derivatives can be an order of magnitude larger than cash markets and the main thing that slows growth is the lack of physical delivery … Volumes are reduced due to a trust problem when it comes to transactions settled in cash .

Lamb explained that, in the best of cases, the cryptography futures market can be twenty times larger than its local compatriot, which means that tens of billions could eventually be traded through linked cryptographic derivatives.

Is CoinFLEX a Bakkt, BitMEX competitor?

As it seems, many would say that this little known startup is ready to face the great “gladiators” in the cryptosphere. For example, some would argue that this platform could be a “killer of Bakkt”, since CoinFLEX intends to offer physically delivered leveraged futures, which will likely attract ambitious speculators from around the world.

Bakkt, is the first cryptocurrency platform in the United States of a notable institution (the NYSE parent company, Intercontinental Exchange) that intends to launch physically supported BTC futures, which will differentiate its offer from CME and CBOE vehicles. Many have argued that Bakkt will catalyze the next concentration of cryptography bulls without help, but with the arrival of CoinFLEX, it may be a double effort.

There is no doubt that the eToro will expand its range to the US market crypto.

Published inCryptocurrencies

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