DCG And Polychain Invest In Coinflex’s Crypto Futures Exchange
Two venture Capital (VC) institutions, Digital Currency group and Polychain Capital just recently invested unstated amounts into CoinFLEX, which is an exchange for crypto futures.
While disclosing this recent development, CoinFLEX stated that these new investors are an addition to their current investors, which are BItcoin Proponent Roger Ver, Dragonfly Capital Partners, and Trading Technologies.
CoinFLEX is intent on launching contracts involving futures for stablecoins exchange and is currently launching a “global, scalable and secure crypto futures exchange” which will provide BTC futures that will be physically deliverable.
In an effort to explain Polychain Capital’s investment interest, its CEO Olaf Carson-Wee said that
“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 volatility and hash rate volatility.”
With the issuance of physically delivered cryptocurrency futures, the contracts will be concluded with real cryptocurrencies like the Bitcoin (BTC).
It was also made clear, that BTC futures contracts, which are issued by dominant exchanges like Cboe, will be concluded with cash, as opposed to BTC.
Travis Scher, the Digital Currency Group investments VP said that “The development of a robust digital currency futures market is critical to the long-term sustainability of the asset class”.
FLEX, a token by CoinFLEX, was also launched as a reward for traders in exchange for liquidity provision.
The Flex Token
CoinFLEX also explained that its token would be issued to traders in proportions calculated by amounts traded daily by each trader, in relation to total traded volumes per day.
In consideration of its token issuance, traders are then capable of calculating platform use discounts.
The announcement of CoinFLEX was initially made at the launch of CoinFLoorEx two months ago, which was a spin-off from CoinFloor group.
While on industry spin-offs, Intercontinental Exchange, which was born of the New York Stock Exchange had initially been set to also launch their BTC futures with intent to be physically settled. Unfortunately, this launch has been delayed severally, but is hoped to be launched in later parts of 2019.