Seychelles-based Crypto-Futures Exchange, CoinFlex, Starts Issuing the First Ever Libra Futures – bitcoinke.io

CoinFlex, a crypto-futures exchange which launched in early 2019, is the first exchange to offer an Initial Futures Opening (IFO) linked to the launch of Facebooks Libra crypto project.

CoinFlex also happens to be the worlds first physically delivered cryptocurrency futures exchange. The exchange creates futures on coins that do not exist yet on blockchains that are well-funded in private markets but are yet to launch.

[Advertisement]

CoinFlex is offering the Libra derivative that is expected to pay out based on the likelihood Libra will be operational by the end of 2020.

So far, the seychelles-based exchange has launched the Polkadot IFO, a future platform that provides an interoperability platform, and is now facilitating bets on whether Facebook can come close to meeting its target December 2020 launch date.

Speaking on the Libra IFO, Mark Lamb, CEO, CoinFlex, told Bloomberg:

Facebook has the ability to rival the entire global banking system from day one, but, because of that fact, when that first day will be is far from certain.

CoinFlex is offering physically-settled futures that will deliver Libra tokens if the stablecom goes live by December 20th, 2020 or the agreed settlement date. If Libra is not operational by then, investors will lose all their initial investment.

The initial price of Libra futures is set at 30 Cents, which is roughly 30% probably whether Libra will be operational on the said date. This means that if an investor ascribes an 80% chance to Libra being operational before the contract expiry date, they get pay equivalent of 80% of Libra. If the investor is wrong, they get nothing.

Here is the process on how to hold Libra futures on CoinFlex:

Short and long trades will be capped at $1.1 per Libra gain to account for changes in currency values that are backing the Libra stablecoin.

While Mark Zuckerberg, CEO, Facebook, has not committed to a timeframe on the Libra launch, head of Calibra, David Marcus, has reiterated that a 2020 launch remains the goal. It remains to be seen if the current regulatory environment will make it possible to launch by the said date.

Initial Futures Offering (IFO) explained

Sign Upfor the upcoming Bitcoin & Crypto Trading Crash Course to learn how to trade and earn from bitcoin and other cryptocurrencies.

Like our content? Please support our work by tipping us.

View original post here:

Seychelles-based Crypto-Futures Exchange, CoinFlex, Starts Issuing the First Ever Libra Futures - bitcoinke.io