Coingape - 10/7/2019 8:51:07 AM - GMT (+0 )
Cryptocurrency derivatives exchange CoinFLEX is all set to launch physically-settled futures contracts for Libra. Furthermore, the exchange plans to hold an Initial Futures Opening (IFO) for the same on the 24th of October.
Per a recent Bloomberg report, the newly launched crypto derivatives exchange will allow the traders to bet on the possibility of Libra going live by Dec 30, 2020. Depending on their long and short positions, Libra traders would either receive Libra tokens or nothing by the assigned date. If in case Libra doesn’t see daylight, traders will lose their entire initial investment. The initial price for Libra Futures has been set at 30 cents.From the CEO’s Desk
CoinFLEX CEO Mark Lamb said,
The price equates to a 30% chance that Libra will be operational by the date. The price was set after long discussions with traders and will allow for diversified trading.
He also said,
Investors Can Also Bet on Libra
The political backlash has been brutal and it’s anyone’s guess of Facebook will get over this line.
Investors can also bet if Libra will be launched in 2020. In this case scenario, for both long and short trades, gains will be capped at $1.1 per Libra. This is to account for changes in the value of currencies which will be backing Libra.
Interestingly, this is not the first time CoinFLEX is offering an IFO for a yet to launch token. In July, the Seychelles-based exchange launched an IFO for blockchain interoperability project Polkadot’s DOT tokens. Furthermore, the exchange offers physically-settled futures for Bitcoin (BTC), Bitcoin Cash (BCH) and Ether (ETH).Visa MasterCard Retract Support for Libra
While new developments around the platform act as a source of hope, all is not glorious in the Libra sphere. In a recent update, Visa and Mastercard have declined to publicly support the project. Moreover, including them, PayPal and Stripe Inc. are also reconsidering their membership.
Regulators have strongly opposed the plan fearing a shift of monetary power from the Feds. Even David Marcus, Libra’s co creator0 accepted that “it will be a long road.” Irrespective of the backers getting cold feet, the project release by 2020 seems highly doubtful. However, the firm is still optimistic about meeting its June 2020 timelines.Member Companies To Decide on Libra’s Fate
Member companies of the Libra Association are set to meet later this month in Switzerland. Also, representatives from the companies will appoint a board of directors for the Libra Association at the meeting.
David Marcus, Co-creator of Libra said in a tweet,
“For Libra to succeed it needs committed members, and while I have no knowledge of specific organizations plans to not step up, commitment to the mission is more important than anything else.”
Will CoinFLEX’s initiative bring in huge profits for traders or will it be a flop show? Let us know what you think in the comments below!
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Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.