Binance to offer options, futures and perpetual contracts

Date: 
September 06, 2019
Read time: 
2 minutes

Binance has done it again. They keep innovating and competing with the biggest names out there. These days they’re squaring up against BitMEX and other established brands. That’s right, Binance is breaking into the derivatives and futures market.

Binance has done it again. They keep innovating and competing with the biggest names out there. These days they’re squaring up against BitMEX and other established brands. That’s right, Binance is breaking into the derivatives and futures market.

We think open competition is a great way to test out the products’ usability. Through the competition, we hope to fully review the two products in terms of market feedback, scalability and liquidation model design. It’ll help with the ultimate decision making. (Binance)

And why not? Binance is the world’s largest cryptocurrency exchange. They need to keep innovating. They need to stay fresh. So they announced on Monday, September 2nd, 2019 that they have acquired JEX. This small exchange is based in Seychelles and offers derivatives products, futures, options, and perpetual contracts. 

As part of the acquisition, JEX will rebrand as Binance JEX. Even though Binance is working on their own platform (internally), they acquired JEX and rebranded it so that they could test which is better for customers. Over the next month or more, Binance is asking its clients to trade on both the internal platform and the Binance JEX platform -- all to get a feel for which one their clients prefer and why. Beta testing traders will then vote for their favorite and score a chance to win nearly 10,000 BNB tokens. Naturally, after the testing period, Binance picks the winning futures platform and modifies it to have the best of both worlds.

Why is Binance doing it this way? According to a Binance spokesperson: “We think open competition is a great way to test out the products’ usability. Through the competition, we hope to fully review the two products in terms of market feedback, scalability and liquidation model design. It’ll help with the ultimate decision making.

Get More Knowledge: The Best Crypto Services You Should Use

Either way, however, Binance approaches this market, they’re in for stiff competition. Established brands such as Deribit and BitMEX have seen their customer base grow and grow in recent months. BitMEX’s insurance fund is up by 50% since the beginning of 2019. They hold over 31,300 BTC. Meanwhile, Deribit is said to control 95% of the total options market in crypto. CoinFLEX, which specializes in physically settled futures contracts, raised $10 million -- then went ahead with a market-making incentive program to gain traction and awareness. 

Bottom line: it’s great news for us traders and cryptocurrency enthusiasts. The space is expanding at a rapid clip and filling up with companies who are truly innovating and competing for our money. The more competition and innovation -- the better for us.

The future of cryptocurrency is solidifying more and more as a new asset class.

Posted by R.R. Hauxley

R.R. Hauxley traveled around the world ... 1 year on 1 Bitcoin. 20 countries, 12 months, 1 Bitcoin. He wrote a book about it: Stolen Wallets and Where to Buy Them. Along the way he met and interviewed the sharpest, brightest minds in crypto today: Vitalik Buterin, Charlie Lee, and more. Today Rafael educates the crypto curious and delves further into the incredible world of blockchain.

Comments

Add new comment

CLAP

Share

text
Find Great Tools