CoinFLEX

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Coin Futures Lending Exchange (CoinFLEX)
Coinflex logo.jpg
Founded 2019
Headquarters Hong Kong
Key People Mark Lamb, CEO
Products CoinFLEX (cryptocurrency exchange): BTC, ETH, BCH futures contracts
Twitter @CoinFLEXdotcom
LinkedIn Profile
Website Coinflex Homepage
Blog CoinFLEX Blog

Coin Futures Lending Exchange, or CoinFLEX, is a cryptocurrency trading venture owned by a consortium of individuals and companies, including Roger Ver, Trading Technologies, and Coinfloor, that initially targeted Southeast Asian traders. It was originally called CoinfloorEX, a unit of Coinfloor.[1] The CoinFLEX platform launched in February 2019.[2]

In August 2019, CoinFLEX launched a new incentive program for market makers after closing a $10 million fundraising round with VC firms Polychain, NGC Ventures, Fenbushi, and Struck Capital. CoinFLEX launched this program, which offered rebates of $250,000 in total to the firms trading on the platform, in the hope of increasing its daily trade volumes of XBT/USDT (bitcoin to Tether futures) to $500 million. At the time that the news broke, three firms had signed up, and CoinFLEX was aiming to sign up 7 more.[3]

Products and Services

CoinFLEX offers its customers what it claims to be the world's first physically-settled futures contracts for bitcoin, Ether, and Bitcoin Cash traded against Tether and leveraged up to 20 times.[4]

CEO Mark Lamb said in a Bloomberg interview that offering physically-settled crypto futures means that when one of these futures contracts expires, the owner or owners of the contract are given the underlying cryptocurrency rather than a cash payment, as is the case with bitcoin futures contracts offered by Cboe and the CME Group, for example. Traders who go short will deliver a cryptocurrency such as bitcoin and receive Tether, a cryptocurrency whose value is pegged to the U.S. dollar. Traders who go long will deliver Tether and receive another cryptocurrency.[5]

CoinFLEX also intends on offering stablecoin-to-stablecoin trading services, offering trading contracts for Tether against Circle's USD Coin.[6]

In August 2019, Lamb told The Block that the platform was looking to roll out futures tied to Bitfinex's LEO token, as well as Binance Coin (BNB) and TRON's TRX token.[7][8]

"Initial futures offering"

CoinFLEX is expected to launch a physically-delivered futures contract product for Polkadot (DOT), a blockchain interoperability project that has yet to launch, by the end of 2019. According to Lamb, DOT's token market is "extremely illiquid," "entirely dark," and has "zero transparency." CoinFLEX closed a private sale of 500,000 DOT as part of an "IFO," or initial futures offering, which was reportedly valued at $1.2 billion. Lamb told The Block that CoinFLEX wants to improve the problems of illiquidity and lack of transparency in such token sales, which he said are "over-margined on the short side." He said that offering futures contracts on such a product protects buyers by allowing them to trade at fixed prices in the event that the price moons, while CoinFLEX collects extra funds from the seller to protect them from defaulting.[9]

References