The FTX crypto derivatives exchange has recently launched its Bitcoin (BTC) trading options. The trading officially started on the 11th of January, 2020.
$1 Million Exceeded In 2 Hours
Sam Bankman-Fried, CEO of FTX, made this news public by way of a tweet he did yesterday. On the very same day, he claimed that the option’s trading volume had already reached the $1 million mark on the exchange, in as little as two hours.
Options are live!https://t.co/B85lrLVDQO
— SBF (@SBF_Alameda) January 12, 2020
The announcement itself doesn’t specify which of these cryptocurrencies are supported by these newly launched options on its platform. The website is only showing its Bitcoin-based options to the public. CoinGecko, a crypto data website, indicates that FTX stands eighth on the top crypto exchanges, based on volume. According to CoinGecko, FTX has traded around $277.8 million in the past 24 hours.
Founded in early 2019, FTX provides professional derivatives in its trading products. Of these derivatives, perpetual and quarterly contracts on various forms of leverage tokens, digital assets, and over-the-counter services are included. In recent times, the exchange has enjoyed a substantial investment from the crypto exchange giant, Binance. This investment happened in late December of last year.
At the time of writing, Bankman-Fried has failed to respond to requests for comment about the matter.
Global Acceptance of Crypto Derivatives
In recent times, the world has seemed to find a unique niche within the crypto market that makes direct use of its volatility. OKEx, the Malta-based crypto exchange, has recently announced that it would launch its own form of crypto options trading at the end of December.
Another asset management firm, the Paris-based Napoleon AM, launched its private regulated Bitcoin fund back in the middle of December last year.
As more interest is garnered into this market, international regulation became the natural next step. A global framework for regulation has become more transparent and more favorable for all parties. An example would be that the Presidential Committee of South Korea has made recommendations in regard to the Fourth Industrial Revolution.
Of these recommendations, one includes permission for financial institutions to launch their own forms of crypto-based financial products. This would cut out the middleman-style of business that most banking institutions are mandated to use at this time.
Make no mistake, cryptocurrencies will dominate the world one day. Until that time has come, crypto will exist alongside fiat currencies. While many would already consider fiat and its like to be a legacy technology, it’s more like crypto is still in the prototyping stage. Money’s financial principles have never changed; it’s just a matter of when crypto will fully develop inside its bounds.