FXT derivatives exchange announced on October 29 that it has launched futures platform tracking an Index of 8 China cryptocurrencies.
FXT derivatives exchange announced that it has launched Futures platform tracking an Index of 8 China cryptocurrencies. This announcement came on October 29 in the midst of the blockchain endorsement by China’s President Xi Jinping. The new index will track eight popular Chinese crypto projects.
The new development was announced in a tweet by the firm’s CEO Sam Bankman-Fried on October 29.
https://t.co/xZ5cjcRb11 is live!
— SBF (@SBF_FTX) October 29, 2019
Dubbed Dragon Perpetual Futures Index (DRGN-PERP), the index will track QTUM, TRX, BTM, IOST, NULS, ONT, VET, and NEO. All these cryptos are added with a weighted average of their price. FXT also said that it is offering traders exposure to these tokens coming as perpetual futures contracts based on the index.
In recent months, the perpetual contracts have become quite popular in the crypto sector. These instruments greatly resemble the traditional futures contracts and they enable investors to gain from selling digital assets either long or short just like the futures contracts. But, they have no expiration dates, unlike the futures contracts.
Traders can leverage these contracts up to 101 times as explained by Bankman-Fried. China is widely known that it does not permit crypto trading within its jurisdictions. Hence, the promoters of the coin operate from the nearby friendlier shores since the ban of 2017.
The FXT exchange operates out of Barbuda and Antigua. It has a history of offering less orthodox indices after it launched hilariously titled Shitcoin Perpetual Futures Index in August. Reports show that the offering covers a large basket of 58 low-market cap cryptocurrencies.
The Timing
The timing of this DRGN-PERP launch has come at the most appropriate time according to many analysts. As we highlighted a few days ago, Chinese President Xi Jinping encouraged his country to “seize the opportunity” provided by blockchain technology. The President even proposed adoption across a wide range of sectors.
The Chinese tech and blockchain stocks experienced a major spike in interest after Jinping’s comments. That prompted the authorities and regulators to request investors and the general public to avoid speculative behavior. Bankman-Fried said:
“China recently voiced support for the blockchain industry, causing a bunch of cryptocurrencies developed there to skyrocket in price and driving intense user interest in Chinese cryptocurrency projects.”
Many other exchanges like Bithumb and Gate.io introduced similar contracts. However, they were backed by single digital assets.
The Journey
A team of Silicon Valley and Wall Street veterans launched the FXT Derivatives exchange and later Alameda Research incubated it. These founding members have extensive hands-on trading experience and the new crypto platform is providing services that include leveraged tokens, futures trading, and over-the-counter (OTC) services.
In the past, the platform has listed some strange derivative indices like the Shitcoin Perpetual Futures Index. Earlier in the year, the company got $8 million in seed funding from top crypto venture capitals. The investors provided the money to help the company to expand its reach in the industry.
In the meantime, the Chinese cryptocurrency market seems to be coming back on track after a blackout that lasted more than two years. Commentators, investors, and analysts are hopeful that the crypto trading drought will be over after a speech by President Jinping last week.
His blockchain endorsement has resulted in a new flow of demand in the cryptocurrency market. Moreover, it has pushed the Chinese blockchain stocks significantly higher.
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