As reported by Bloomberg, an up-and-coming crypto startup named CoinFLEX are taking on the crypto exchange behemoths of Bakkt and BitMEX, with the offering of physically settled crypto futures contracts with 20x leverage.
Headquartered in Hong Kong, this newfound contender was formerly a unit of the UK Bitcoin exchange Coinfloor, but is now branching out as its own crypto exchange.
CoinFLEX is said to be a promising startup, and should not to be overlooked, as it’s backed by Bitcoin Cash leader Roger Ver, as well as Trading Technologies International, a prominent trading software company. Also, the exchange’s chief executive is Mark Lamb, the co-founder of Coinfloor and crypto veteran of 6 years.
Lamb was recently interviewed by Bloomberg, and he expressed the importance of physical crypto derivatives. He explained that this market will be far bigger than spot markets, stating:
“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.”
Further explaining the importance of physical derivatives, Lamb said that in a best-case scenario the crypto futures market could eventually see billions of dollars traded via crypto-tied derivatives, and could even be 20 times larger than crypto spot markets.
BTC, ETH, and BCH Futures Contracts With 20x Leverage
Furthermore, Lamb also stated that CoinFLEX will be offering physical futures contracts for not just Bitcoin (BTC), but Ethereum (ETH) and Bitcoin Cash (BCH) as well. He also shared that unlike Bakkt’s futures contracts, CoinFLEX will offer the ability to trade on up to 20 times’ leverage.
The combination of physical crypto futures contracts along with the ability to trade with leverage is completely new and unheard of in the cryptocurrency space. Some might argue that CoinFLEX could be the “Bakkt killer,” due to their unique trade offering that could attract speculators from across the globe.
If you don’t already know, Bakkt is a cryptocurrency platform created by the Intercontinental Exchange (ICE), which is set to launch physically backed Bitcoin futures in January 2019. What sets CoinFLEX apart from Bakkt is their offering of 3 different crypto assets and the ability to trade with leverage.
However, Bakkt has a lot going for themselves as well with multiple high-profile partnerships, including Microsoft, Boston Consulting Group, Starbucks, and numerous others. Many crypto enthusiasts believe Bakkt’s launch could lead the next crypto bull market, and now with CoinFLEX on the horizon, maybe both exchanges will do just that.
Another notable crypto platform that CoinFLEX is set to disrupt is BitMEX. Also headquartered in Hong Kong, BitMEX offers traders the ability to trade with 100x leverage on their XBT/USD trade pair. This high-leverage trading feature has made BitMEX an estimated $1 billion+ in 2018 alone.
So, with CoinFLEX offering both leverage and physically settled futures contracts, the exchange is poised to be an appealing option to investors and speculators in the crypto industry. It will be exciting to see what effect the launch of both Bakkt and CoinFLEX have on the cryptocurrency market, and who is more successful in the long run.
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