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 Founder Justin Sun Apologizes for 'Over-Marketing' Lunch With Warren Buffett

Chinese crypto-entrepreneur Justin Sun, the founder of the TRON cryptocurrency who won a lunch with billionaire investor Warren Buffett, has apologized on social media for ‘over-marketing’ the event and his cryptocurrency.

According to Quartz, Sun published a letter on Chinese microblogging platform Weibo apologizing “to the public, media, officials, and regulatory authorities” for over-marketing his cryptocurrency and the highly-anticipated charity lunch with Warren Buffett.

In the letter, he claimed his intentions were because of his admiration for the ‘Oracle of Omaha’ and his enthusiasm for charity. While noting he also planned to promote blockchain technology and TRON itself, he claimed his “immature, naïve, and impulsive conducts […] turned it into an out-of-control and failed over-marketing hype and led to a significant series of unexpected consequences.”

Sun, as CryptoGlobe covered, paid $4.57 million to have lunch with Buffett, and recently postponed it allegedly because of kidney stones. In his letter, he wrote:

During the whole process, I went from being excited, to worried, agonized and then terrified and regretful. … It led to a negative influence on the public and also drew concerns from regulators who care about me. Again I want to say: I am sorry.

While Sun didn’t specify which regulators he was referring to in his letter, he mentioned them a total of 13 times in it. The letter has so far only been published in Chinese, which according to some speculators means it was directed at Chinese authorities.

Is Sun in Hot Water With Chinese Authorities?

Soon after Sun announced the postponement, Chinese news outlet Caixin reported he was on the country’s border control list, and couldn’t leave the country. Per the publication it was unclear how the founder of TRON got out of the country, but it’s clear he did.

This, as soon after the reports surfaced he livestreamed himself in San Francisco, proving to the world he wasn’t in the country.

According to Decrypt the director of global communications at the TRON Foundation, Cliff Edwards, claimed Caixin’s report was untrue, and that Sun was in San Francisco since October and has been moving freely in other countries.

A source close to the situation reportedly told the news outlet Sun hasn’t pleased the Chinese government because he was planning to have lunch with Buffett, and was going to give money to American charities. The source reportedly stated:

Justin was giving money to American charities—when the Chinese economy is suffering under Trump due to trade wars. You can connect the dots So he’s been apologizing to the government, and Caixin. It’s an apology tour.”

In his apology Sun claimed he is a low point in his life, and that he has been losing sleep while reflecting on his mistakes.