CoinFLEX – the first physically delivered cryptocurrency futures exchange – has today announced two of the most prominent investment firms in the crypto ecosystem, Digital Currency Group (DCG) and Polychain Capital, have invested an undisclosed amount in the trailblazing Hong Kong-based derivatives exchange.
A spin-out of Coinfloor – one of the U.K.’s oldest cryptoasset exchanges – CoinFLEX released the news early on Wednesday afternoon (HKT) via a press statement. The investment from two industry heavyweights in DCG and Polychain represents further validation of CoinFLEX’s differentiated solution. Indeed, the physically-settled futures exchange made a point of highlighting the fact the two crypto investment firms:
Join a consortium of high-profile technology companies, market makers and crypto investors backing the firm, including Trading Technologies, Roger Ver, Mike Komaransky, Dragonfly Capital Partners, and a number of leading market making firms.”
CoinFLEX also used the announcement to unveil a strategy “to encourage liquidity and reward members who trade on the platform.” Called FLEX Coin, the Seychelles-incorporated exchange explained that each day, a set amount of FLEX Coin “will be paid out to traders based on the proportion of the volume they trade as a taker, relative to the total daily volume on the platform.”
Whilst the full details vis-à-vis FLEX Coin will be made available in the weeks to come, CoinFLEX noted that a benefit of holding the loyalty coin will be that traders will be able to spend FLEX Coin in order to receive back 50 percent of their total trading fees from the previous 24-hour period.
Beyond delivering physically-delivered bitcoin futures to retail investors this month, CoinFLEX – which is being led by Coinfloor co-founder Mark Lamb – will also be launching a stablecoin-to-stablecoin futures contract; providing “investors with the ability to hedge exposures with zero index or settlement manipulation risk.”
In explaining DCG’s decision to invest in the ambitious Hong Kong-based futures exchange, Travis Scher (VP of Investments) emphasised the crypto investment company’s belief that “the development of a robust digital currency futures market is critical to the long-term sustainability of the asset class.”
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.
#CoinFLEX is thrilled to announce our new investors: Digital Currency Group and Polychain are investing in CoinFLEX💪🏻💪🏻💪🏻https://t.co/qVIxHzGCh6
The official launch of the exchange will be coming soon, please stay tuned with us#CoinFLEX #FLEX #physicaldelivery #FLEXisthefuture— CoinFLEX (@CoinFLEXdotcom) March 13, 2019
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