Crypto Derivatives Exchange BitMEX Announces TRON (TRX) Futures Contract

Siamak Masnavi

On Monday (25 June 2018), or TRON Independence Day, cryptocurrency derivatives exchange BitMEX announced that it is soon launching a TRON (TRX) futures contract.

Here is the announcement on BitMEX's blog by BitMEX co-founder and CEO Arthur Hayes:

Due to popular demand, we will be listing the BitMEX TRON / Bitcoin 28 September 2018 futures contract, TRXU18, on or before 26 June 2018 08:30 UTC.

However, on Tuesday (26 June 2018), BitMEX sent out the following tweet to explain why it was unable to go ahead with the launch on June 26th and instead postponing this to June 27th:

A TRX futures contract is an agreement to buy or sell TRX at a predetermined price at a specified time in the future. In this case, BitMEX is initially offering one future contract product, i.e. one with an expiration date of 28 September 2018. 

As well as futures contracts, BitMEX offers a type of derivative called a "perpetual contract" that is similar to a standard futures contract in how it trades, but it has no expiration date, and so you can hold a position for as long as you wish. Perpetual contracts trade track the underlying index price quite closely.

Here are a few things you should note about BitMEX:

  • It is a P2P trading platforms that offers leveraged contracts that are bought and sold exclusively in Bitcoin.
  • It does not handle fiat currency.
  • It allows trading with a high degree of leverage.

As well as the TRX futures contract, BitMEX offers futures contracts for Bitcoin, Bitcoin Cash, Ada, EOS, Ether, Litecoin, and XRP.

For TRX trades and investors, the advantage of using futures contracts is that they can be used for hedging/managing risk or for making higher profits (since they are highly leveraged) for speculation purposes (even in a bear market). We should not forget what early Bitcoin investor Tyler Winklevoss tweeted on 7 May 2018 after hearing that Bill Gates had said that he would short Bitcoin if he could:

 

TRON's Justin Sun Announces New Acquisition as Rumors Point to Steemit

TRON founder Justin Sun has announced a new acquisition is set to be announced early next year. Details are scarce but Sun’s announcement claimed it was for BitTorrent and its BTT token.

TRON, as CryptoGlobe reported, acquired BitTorrent last year after winning against a $170 million bid from NEO. It launched its BTT token via the Binance Launchpad platform, and it has since been listed on major trading platforms. Sun’s announcement regarding the new acquisition reveals it’ll bring in “new members to BitTorrent family.”

According to various rumors on social media, Justin Sun’s announcement is referencing a new acquisition of the popular blockchain-based blogging platform Steemit. These rumors appear to cite Chinese news outlet Mars Finance, a crypto media outlet valued at $200 million that received investments from Binance, OKCoin, and others, as their source.

Steemit is a popular platform where users are rewarded in both STEEM and Steem Dollars (SBD) for creating and curating content. Its CEO, Ned Scott, revealed late last year the company behind the platform, Steemit Inc, was forced to lay off 70% of its staff to reduce operating costs and was restricting its organization to stay afloat.

Sun’s announcement doesn’t seem to have affected the price of either TRX or STEEM, as both are down by little over 1% in the last 24-hour period. The crypto market in general is in the red in the aforementioned period, with BTC dropping about 2%.

As reported, the TRON Foundation has announced it will be unlocked 33 billion TRX, worth around $440 million, in the beginning of 2020. The Foundation hasn’t revealed what the funds will be used for, but it’s possible they may go toward the recently announced acquisition.

Earlier this year, TRON invested in the popular cryptocurrency exchange Poloniex, shortly after it spun out of Circle. Since then Poloniex has been adding TRX trading pairs, and now features a decentralized TRX exchange as well.

Featured image via Unsplash.