- JEX will now become Binance JEX
- Users will compare own Binance’s platform with Binance JEX’s
- Binance now enters the lucrative crypto derivatives market
Binance cryptocurrency exchange has entered the futures market by acquiring a Seychelles-based derivative platform. The new outfit will offer derivative products such as futures, options, and perpetual contracts.
Right to Manage JEX Tokens
The Malta-based cryptocurrency exchange announced via a press release on September 2, 2019, that JEX will now rebrand to become Binance JEX adding that the acquisition grants them the right to manage JEX tokens, the native digital currency of the JEX platform. The releases stated:
“JEX will join the Binance ecosystem as Binance JEX and focus on further building the crypto-asset derivatives market.”
As per the notice, JEX will maintain all its existing services of the acquired platform which includes spot trading facilities for 21 cryptocurrencies, including bitcoin, EOS, Ether, and Binance’s native asset BNB. Binance JEX will on its part inherit JEX’s cryptocurrency derivative solutions as part of the acquisition. This initiative will enable the new outfit to offer margined bitcoin futures contracts.
Beta Testing Both Platforms
According to the merger document Binance, which has been working on its own platform internally will enable its clients to trade on the JEX platform beside the one it has developed before deciding which platform is the more superior one. Users taking part in beta testing both platforms will be able to vote for their chosen platform and have the chance to win prizes of up to 10,000 BNB tokens.
By acquiring the derivatives platform, the world’s leading cryptocurrency exchange by trade volume enters the most heated markets in crypto space. Some leading brands in this market include Deribit and BitMEX which have reported seeing their volumes grow in recent months, with BitMEX’s insurance fund up by 50% since the beginning of 2019 to over 31,300 BTC.
Race for Crypto Derivatives Dominance
Meanwhile, Deribit dominates around 95% of the total cryptocurrency options market. CoinFLEX, which specializes in physically settled futures contracts, recently raised $10 million and launched a market-making incentive program to boost its market share.
The announcement by Binance puts the exchange squarely in the race for crypto derivatives dominance. This comes hot on the heels of, one of the world’s leading bitcoin derivatives platforms BitMEX, landed itself in controversy concerning its insufficient matching engine and an alleged regulatory probe by the Commodity Futures Trading Commission, similar services started brewing up as competition.