Home News Exchange Hong Kong-based Crypto Exchange CoinFLEX to Offer Bitcoin Futures with 20X Leverage

Hong Kong-based Crypto Exchange CoinFLEX to Offer Bitcoin Futures with 20X Leverage

January 07, 2019 18:15
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With NYSE coming up with its own Bitcoin Futures exchange sometime at the end of this month, it has already got a new competitor. Hong Kong-based crypto exchange Coin Futures and Lending Exchange (CoinFLEX) has announced that it will start offering futures contract for cryptocurrencies to Asian investors from February 2019.

The exchange is set to offer futures contract on Bitcoin, Ethereum and Bitcoin Cash with a leverage possibility of up to 20 times. The future contract offered by CoinFLEX will be physically delivered which means that upon expiration, the contract owners will be offered the asset rather payment in fiat currencies. The process is more transparent as it cannot be manipulated and will provide more confidence in the crypto market.

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CoinFLEX CEO, Mark Lamb said:

“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.”

Lamb further added:

“In order to be a large, global exchange focused on traders, the best way to serve the market is to be offshore. Since crypto is a global audience and being regulated by one country would restrict who we can deal with elsewhere, we have chosen to be offshore in order to maximize our accessibility and the trust traders place in us.”

The exchange was launched in February 2018 as CoinfloorEX, the division of UK-based crypto exchange Coinfloor. But, in this latest venture, CoinFLEX will be breaking ties from its former parent company. The new company is co-owned by Coinfloor, Bitcoin Cash Evangelist Roger Ver, B2C2, Dragonfly Capital, Trading Technologies, Mike Komaransky, and others.

Roger Ver also believes that the new exchange will become the largest venue for trading Bitcoin Cash derivatives.

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