As per a report surfaced on Wednesday Digital Currency Group and Polychain Capital have joined hands to invest in CoinFLEX, the cryptocurrency futures exchange although the investment amount remains unrevealed.
While the crypto enthusiast kept waiting for the Bakkt Bitcoin Futures Platform, CoinFLEX has physically delivered the bitcoin features. CoinFLEX is a sister concern of United Kingdom based crypto exchange Coinfloor. The project of CoinFLEX will give an excellent competition to yet to introduce Bakkt project, or it may outshine it.
The CoinFLEX project is already supported by a crypto innovator like Roger Ver, Dragonfly Capital and Mike Komaransky Partners which means scaling from this point is more comfortable.
CoinFLEX has also announced about two add-ons to their futures exchange platform. Firstly, they will be launching a Flex coin to improve liquidity and reward traders. After receiving the token, it will be trader’s decision to trade them at a 50% return of trading fees.
Secondly, they will be introducing stablecoin to stablecoin future contract; this will enable the trader hedge exposure with zero index and avoid settlement manipulation.
In short, we can say, CoinFLEX will be launching a scalable, protected crypto futures exchange on a global platform that will be delivering Bitcoin physical features, and in the future, the exchange will offer futures contract of stablecoin to stablecoin.
The Polychain CEO said CoinFLEX would be gathering significant order from the speculators, traders, and those who are looking for to hedge against the price volatility of the cryptocurrencies as it will be physically settled futures exchange.
In coin flex, the contracts will be settled physically with cryptocurrencies like bitcoin unlike other exchanges like CME group & Cboe where contracts are resolved with cash and not in cryptocurrencies. In other words, we can say on the occasion of contract expiration the traders will be getting the underlying cryptocurrencies instead of money from CoinFLEX.
The CoinFLEX, CEO Mr. Mark Lamb, has said in a press release that they are going closer to their goal to help the futures trading of cryptocurrencies to attain its full potential.
The announcement about the launch of CoinFLEX was made in last January when CoinfloorEx got separated from its mother company CoinFloor group.
ICE of the US is also planning a similar kind of project. They are preparing to launch exchange with physically settled Bitcoin contracts. Although the launch was deferred many times, they are scheduling to launch it within this year.