- OkEx has announced the addition of seven new crypto derivatives to its platform
- This comes after their successful trial with BTC derivatives
On the 3rd of January 2019, it was announced that OkEx will be adding 7 new crypto derivatives to its platform.
OkEx had launched its first derivative back in late 2018 which was for BTC/USD and has 100 times leverage.
Derivatives a huge success
One of the reasons for the addition of seven new derivatives is the success of the previous one. Lennix Lai, Financial Market Director of OKEx, said:
“The launch of perpetual swap demonstrated our continuous commitment to building a complete financial ecosystem on blockchain and crypto. With the new offering, investors and traders can select the products which best fit their trading and hedging strategies.”
According to OkEx, the BTC futures currently have a trading volume of over $1.5 Billion each day.
Figures like this have encouraged not only OkEx but other firms to explore future derivatives as well.
It was announced a few days ago by the Intercontinental Exchange (ICE) will be announcing the launch timeline for the Bakkt Bitcoin USD Daily Futures.
This came shortly after Bakkt announced that it had raised over $182.5 million its latest round of funding.
Huobi has also launched its futures derivative market for Bitcoin and Ethereum contracts. Trading volumes for the platform have surpassed $1 Billion.
Challenges behind and ahead
As the futures derivatives market is still new and thus, there have been some challenges along the way.
In October 2018, OkEx received some backlash after they abruptly closed BCH futures contracts worth $135 million.
Their reason for that was “Strong volatility observed in the BCH spot and futures markets.”
At the time, a number of investors threatened to boycott the exchange with Qiao Changhe, a former energy futures trader, who lost over $700,000 as a result, saying, “OKEx is losing its credibility. The futures contract became something nonsense, not something we could use to hedge.”
With the numbers they have recorded for their BTC futures and their adding of seven new derivatives, it seems they have managed to weather the storm and thrive regardless of the incident.