The CoinFLEX platform will launch a derivative on Facebook 's libra currency on October 24 .
This futures contract will allow speculators to bet on the success or failure of the Libra launch.
next year.
Facebook 's libra , which is arousing strong opposition, has not yet been launched and speculators are already getting on board.
grab. The CoinFlex platform will be the first to launch a derivative product on the libra from the 24th
October, according to Bloomberg. Speculators can then bet on its success or failure. The contract to
term will be quoted in tether (the stable crypto that is worth around 1 dollar). Its price will vary depending on the
expectations of speculators on the probability that the libra will see the light of day in 2020. If they believe that the failure
is probable, its course will fall towards zero. And its price will tend towards 1 tether, i.e. around 1 dollar, if the
market estimates that the launch of libra is likely next year. A forward contract will give the right
to receive a libra if it is actually launched.
fierce opposition
The futures contract is issued at a price of 30 cents, which equates to a 30% probability that the currency
of Facebook is launched next year and before December 30, 2020. If the project fails, the speculator
who would have bet on success will lose all his bet. If Facebook manages to launch its currency, the speaker
will receive his libra . The platform will limit the maximum possible gains for speculators. These will have to
deposit tether on CoinFLEX as collateral against price fluctuations. The more the activity will be
important on this contract the more its price will be indicative of the opinion of the crypto market on the risks
of the Facebook project . The latter is facing fierce opposition from regulators around the world.
whole. Some members of the Libra Association have defected. Will some be tempted to resort
to CoinFLEX futures contracts to hedge against the risk of project failure?
If the libra futures contract succeeds , platforms might be tempted to emulate CoinFLEX.
Major crypto platforms should wait for the actual launch of Facebook 's currency
to possibly create a derivative product. Libra is designed to be a stable crypto, backed by a
currency basket. It is therefore less attractive to speculators than bitcoin.
Nessim Ait-Kacimi

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