CoinFlex Bitcoin Futures Platform Raises $ 10 Million Supported By Roger Ver and Polychain Capital
CoinFlex, Bitcoin futures trading platform, raised $ 10 million in financing and does not hide its desire to bypass the BitMEX cryptocurrency derivatives exchange in terms of trading volumes. The CEO of a Hong Kong company, Mark Lamb, said this in an interview with the South China Morning Post.
CoinFlex investors included the chairman of the board of directors of Bitcoin.com, Roger Ver, as well as Polychain Capital, NGC Ventures and Divergence Digital Currency, and the deal itself was closed last week.
As Mark Lamb notes, due to price manipulations, the Bitcoin futures market especially needs delivery contracts, which are calculated in cryptocurrency, not cash.
“Professional and retail traders alike are affected by price manipulation in the cash settled futures market. In physical delivered contracts, anyone long at expiry receives the underlying bitcoin. There are no formulas involved,” he said.
According to the head of CoinFlex, in recent months he has been observing more and more attempts to manipulate prices. This is done by traders trying to take advantage of lower trading volumes in spot markets compared to futures. According to Mark Lamb, the current trading volume on the futures markets is one and a half times higher than the spot markets.
CoinFlex launched the platform for trading cryptocurrency futures with leverage up to 20x in February this year and focuses on Asian markets mainly. Whether residents of Hong Kong, where the company is based, can trade on it, Lamb, however, did not specify.
Nevertheless, he does not hide the fact that CoinFlex intends to bypass BitMEX, the leading cryptocurrency derivatives exchange in terms of trading volumes ($ 2.86 billion daily according to Coingecko), which earlier in August imposed a ban on trade due to the increasingly close attention of regulators around the world on its platform for residents of Hong Kong and several other jurisdictions.
Earlier the Bitstamp cryptocurrency exchange began an internal investigation of the situation that happened on the night of May 17, when one of the traders successfully implemented several requests for the sale of 5000 BTC at $ 6200. This, in turn, led to the massive liquidation of long positions on the BitMEX derivatives exchange and, according to experts, caused a sharp collapse in the Bitcoin exchange rate.