- CoinFlex is offering futures that settle as Libra tokens
- The token’s initial price bets on a 30% chance of launching in 2020
- The Libra project is facing opposition from leading economies
Seychelles-registered CoinFlex cryptocurrency derivatives exchange is planning to launch a physically settled futures contract based on whether Facebook’s Libra digital currency will be launched in 2020.
Go Live By December 30, 2020
A report appearing on Bloomberg on October 7, 2019, states that the exchange will hold an Initial Futures Opening (IFO) on October 24, 2019. Traders will be allowed to bet on whether the Facebook-owned Libra cryptocurrency will go live by December 30, 2020. Traders taking part in the futures will receive Libra futures if nothing comes to the assigned date based on their long or short positions.
Traders stand to lose their initial investment whose price has been set at 30 cents should Libra’s launch fail to materialize. Commenting on how the exchange arrived at the price of the IFO, CoinFlex CEO Mark Lamb stated:
“The price equates to a 30% chance that Libra will be operational by the date. The price was set after long discussions with traders and will allow for diversified trading […] the political backlash has been brutal and it’s anyone’s guess of Facebook will get over this line.”
The exchange that offers physically settled futures for bitcoin (BTC), bitcoin cash (BCH) and Ether (ETH) offered a similar IFO for a yet-to-launch token last July for the blockchain interoperability project polkadot’s DOT tokens. As per the Bloomberg report, gains for investors betting on whether Libra will be launched in 2020 have been capped at $1.1 per Libra which accounts for any changes in the value of the currencies backing the Libra. Lamb added:
“Facebook has the ability to rival the entire global banking system from day one, but, because of that fact, when that first day will be is far from certain.”
Strongly Opposed the Libra Idea
This announcement on Libra comes at a time when some of the biggest backers of the project like Visa and MasterCard seem to have developed cold feet on the project with others like PayPal and Stripe are said to be reconsidering their participation. Regulators from the leading economies have strongly opposed the whole Libra idea fearing it will take away their monetary powers. Facebook’s blockchain project leader and Libra co-creator David Marcus is no record accepting that achieving the project’s goals will be a long road. Marcus said in a tweet:
“For Libra to succeed it needs committed members, and while I have no knowledge of specific organizations plans to not step up, commitment to the mission is more important than anything else.”
