The innovative cryptocurrency operator was launched with the backing of renowned investors Digital Currency Group and Polychain, as well as Trading Technologies and Roger Ver. The physically-settled futures exchange is set to capture order flow from a wide range of market participants, from speculators to institutional players.
To encourage liquidity and reward members who trade on the platform, the crypto exchange has also announced the daily distribution of FLEX Coin tokens. The leading physically delivered crypto futures exchange will pay them out to traders based on the proportion of the volume they trade as a taker, relative to the total daily volume on the platform.
The digital token then can be exchanged for a discount on the cost of using the platform up to 50% of their total trading fees from the previous 24 hours. The operator argues there is market demand for a global, scalable and secure crypto futures exchange providing bitcoin futures and stablecoin-to-stablecoin futures contracts that ensure hedging with zero index or settlement manipulation risk. physically delivered futures means that at the time of a contract’s expiration, traders will be given the underlying cryptocurrency instead of a cash payment.
Coinflex is the result of a reorganization of United Kingdom crypto exchange Coinfloor’s unit, Coinfloorex. Touted as a competitor to the not-yet-launch Bakkt, CoinFLEX is preparing to offer futures and spot contracts for each of bitcoin (BTC), bitcoin cash (BCH), and ether (ETH) with as much as 20x leverage.
Mark Lamb, CEO of CoinFLEX, said, “With FLEX Coin we want to reward early traders of the platform and build loyalty using a shared exchange coin. We have a growing number of high profile backers, a clear roadmap for delivery and are moving closer to our goal of helping crypto futures trading achieve its full potential.”
Investment firm Digital Currency Group and blockchain investment company Polychain have recently backed CoinFLEX as investors, joining a consortium of high-profile technology companies, market makers and crypto investors backing the firm, including Trading Technologies, Roger Ver, Mike Komaransky and Dragonfly Capital Partners, as well as a number of leading market making firms.
Olaf Carson-Wee, CEO of Polychain, said, “We believe that Mark and his team have identified a gap in the fragmented landscape of cryptocurrency exchanges. As a physically-settled futures exchange, CoinFLEX will be well positioned to capture significant order flow from speculators, institutional traders and Proof of Work miners seeking to hedge against crypto price and hash rate volatility.”
Travis Scher, VP, Investments at Digital Currency Group, said, “The development of a robust digital currency futures market is critical to the long-term sustainability of the asset class. Mark and his team have built a strong model for CoinFLEX, and we believe this new exchange will successfully increase liquidity and market participation.”