Coinfloor, a group of cryptocurrency exchanges targeting institutional and sophisticated retail traders, has launched CoinfloorEX – a cryptocurrency futures exchange.
CoinfloorEX will offer for the first time ever physically delivered cryptocurrency futures contracts, which the firm says will protect investors and traders against price slippage on positions at time of settlement, as well as allay concerns of market manipulation.
“The cash settled futures have been around since 2011 and so far they haven’t succeeded very much. When you talk to the institutional players they all want physically delivered futures,” says Mark Lamb, co-founder of Coinfloor.
By Obi Nwosu, the CEO and co-founder of the cryptocurrency exchange, Coinfloor,
It has been a challenging financial environment for investors since the financial crisis, and difficult to achieve returns on deposits and short term investments. In response to this, many have been seeking alternative investment vehicles to diversify their portfolios. Bitcoin is never far from the media headlines – but what will it take to convert this volatile retail bet into a viable investment option?
The key lies in stablising its price. Cryptocurrency is, of course, decentralised, which means there is no central authority putting measures in place to govern its price or manage volatility. This instability is currently preventing cryptocurrency from acting as a store of value, and subsequently achieving its originally intended purpose as the future of money.