Leading Crypto Derivatives Exchange Bit.com Set to Launch Bitcoin Cash Options
On January 21, the derivatives exchange by Matrixport, Bit.com, announced the launch of the first bitcoin cash perpetual swaps and options. The exchange says before the product launch there was no options market for bitcoin cash and the firm believes there’s room for improvement in this arena of crypto derivatives.
Bit.com, one of the leading derivatives trading platforms developed by Matrixport, has revealed the exchange plans to launch bitcoin cash (BCH) perpetual swaps and options. The exchange detailed that Bit.com will introduce the perpetual swaps product on January 20 and the BCH options trading will begin on the 1st of February.
The announcement notes that BCH is a major crypto-asset “recognized by institutions,” and remains in the top ten positions among the leading crypto market capitalizations.
News.Bitcoin.com recently reported on Bit.com as being among the exchanges with the most open interest in terms of BTC and ETH options. Bit.com’s BCH options announcement details that both bitcoin (BTC) and ethereum (ETH) derivatives markets “grew tremendously during the past few years.”
“Currently, the cryptocurrency perpetual swaps market is dominated by BTC, which accounts for ~53% of the market share, while ETH attributes to 20%,” Bit.com said. “BCH takes only 1% of the crypto perpetual swap market share, which is disproportionate to the relative market share of the underlying asset.”
The exchange further added:
Similar [to the] options market, [the] market is hugely dominated by BTC (accounts for ~90%) while ETH takes up the rest, the options market for other major crypto and/or altcoins are close to non-existent. In short, the BCH derivative market is far from maturity compared to its size and underlying price volatility. With Bit.com’s product launch, this gap in the market will soon be filled.
Bit.com is based in Singapore and the trading platform initially launched its BTC and ETH perpetual swaps and options back in August 2020. The firm states that during the first fives months, the trading platform’s volume exceeded $6 billion. During the last two weeks, crypto derivatives exchanges have seen BTC and ETH options open interest tap all-time records. The exchange thinks bitcoin cash options and BCH perpetual swaps will add to this volume.
“The launch of BCH derivatives by Bit.com enables miners to hedge against risks associated with BCH volatility, which helps make their operation more stable and efficient,” the exchange detailed. “More specifically, miners can lock in profits in advance while generating additional cash flow by selling covered calls; or can hedge against downward price moves by buying protective puts. Users can make use of comprehensive derivative trading strategies made possible by liquid perpetual swap and options market to construct various payoff profiles to best serve their interests.”
During the last few weeks, Bit.com has seen anywhere between $100 to $200 million in crypto derivatives trade volume.
What do you think about the Singapore-based exchange Bit.com launching bitcoin cash perpetual swaps and options? Let us know what you think about this subject in the comments section below.
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Thai Financial Watchdog Asks Local Crypto Exchange to Fix Issues After Three Massive Outages – CoinSpectator
The Securities and Exchange Commission of Thailand (SEC) issued an order against a local cryptocurrency exchange to temporarily stop its operations. Bitkub has been in the headlines since the start of the year due to several outages suffered in their systems.
According to Bangkok Post, the financial watchdog gave the exchange five days, starting January 20, to solve all the technical issues. Mainly, their desktop trading platform suffered three outages since January 2.
The other incidents happened on January 3 and 16, said the local media outlet. One of the reasons behind the rising number of outages is the spike in crypto prices, specifically in bitcoin (BTC). In consequence, Bitkub couldn’t handle trading volumes, stated a source quoted by Bangkok Post.
However, after being inactive for 16 hours since the SEC’s order to temporarily shut down, Bitkub re-opened its mobile application platform for trading purposes. As of press time, Bitkub’s desktop platform remains with its operations halted.
After receiving “heavy complaints” from users about the constant interruptions in the services, the SEC reportedly decided on asking the crypto exchange to shut down.
The SEC’s board met on January 18 to discuss passing a resolution requiring Bitkub to submit the rectification plan and amending issues.
Bangkok Post states that Bitkub is considered the most popular crypto exchange in Thailand. In fact, they have a 97% share of the market based on the volume of accounts and daily trading.
The company reported on January 7 that they have about 800,000 active trading accounts. However, an anonymous source told the media outlet there are just 300,000 – 400,000 accounts. By quoting the person familiar with the matter, Bangkok Post explained:
The discrepancy in figures suggests there are still plenty of new accounts that have not yet been verified through the know-your-customers (KYC) process and are thus unable to be used for trading on the platform.
What do you think about the SEC’s order on the Thai crypto exchange? Let us know in the comments section below.
Crypto exchange Upbit shows over 100% user fund capitalization in audit
Upbit, a South Korean-based cryptocurrency exchange, released today its latest audit reports showing over 100% user fund capitalization in both crypto and fiat. The ‘Digital Assets and Fiat Deposit Audit’ report, was completed by JIAN Accounting Corporation as of Jan 1st, 2021.