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 Founder on More Efficient Stablecoins, Ethereum Collaboration

Justin Sun, the founder of TRON (TRX), one of the largest cryptocurrency platforms for deploying decentralized applications (dApps), recently noted that stablecoins have the potential to provide the infrastructure required to launch robust payment gateways.

According to Sun, a TRON-based USDT will be “faster, cheaper, and more reliable” in the future. He explained that the cryptocurrency has a highly scalable blockchain , which will allow for transfers with USDT, the world’s most dominant stablecoin, to be processed a lot faster.

USDT Transfers On TRON To Benefit Entire Industry

Sun claims that on-chain USDT transaction processing times have become a lot slower and that these issues will be resolved when the coin migrates over to TRON. Sun, whose comments came during a recent podcast interview hosted by Rachel Wolfson, “The Crypto Chick,”  added believes a TRON blockchain-based USDT has the potential to benefit the entire cryptoasset industry.

Going on to criticize USDT’s current implementation, which is based on the Omni layer, he argued that it’s very slow and unreliable. However, he believes that when USDT is integrated on TRON, it will help enable faster and more efficient payment systems. This, Sun noted, would encourage mass adoption of crypto-related products.

“A Lot Of Interest” From Institutional Investors

The former Ripple Labs employee mentioned that TRON's products and services were being developed in order to attract more institutional investors. When asked to clarify how the TRON Foundation intended to distribute $20 million, as part of the decentralized project’s “global appreciation campaign,” Sun said it would be handled in a completely decentralized manner.

Having received a lot of criticism on social media for allegedly mismanaging the giveaway, which reportedly included giving away a free Tesla car, Sun explained that his organization was planning to launch the giveaway via airdrops in a manner that did not involve accessing users’ assets or private keys.

“Fully Decentralized, Secure Method” Of Conducting Giveaways

Going on to confirm that this method is a “fully decentralized and [a] secure method” of conducting cryptocurrency giveaways, Sun said that user funds would remain “100% safe” throughout the whole process.

Responding to a question about whether the TRON-based USDT would be launched at some point during Q2 2019, Sun claimed it would “definitely” be introduced by then. He further remarked that most likely, the TRON Foundation and Tether Ltd. would officially launch it on April 9.

Notably, Sun hinted at collaborating with Ethereum (ETH) developers in the foreseeable future as he stated during the interview:

Even this year you will see TRON (TRX) officially collaborating with Ethereum (ETH) to do something good for the industry.