Binance to Add Support for Cosmos (ATOM) for 'Free' as It's 'Good Tech'

Malta-based digital asset exchange Binance has recently announced that it will list a new cryptocurrency known as Cosmos (ATOM).

Binance, the world’s largest crypto exchange in terms of trading volume, is planning to add support for Cosmos’ native crypto token, ATOM, as the company’s CEO, Changpeng Zhao (“CZ”), believes the project is based on “good” or sound technology.

Cosmos’ ATOM To Be Listed On Binance

According to the exchange operator’s announcement, Binance intends to list the ATOM token tomorrow(April 29, 2019) “at 4:00 AM (UTC).” Users will be able to trade ATOM tokens in the following trading pairs: ATOM/BNB, ATOM/BTC, and ATOM/USDT, Binance’s management revealed.

Cosmos, a distributed ledger technology (DLT)-enabled platform which aims to enable communication between separate and independent blockchain networks, was launched recently. Since Cosmos’ mainnet went live, there has already been over $300 million staked on the proof-of-stake (PoS)-powered network.

In addition to Binance adding support for Cosmos’ ATOM token, US-based crypto exchange Kraken, crpyot exchange Poloniex, and Malta-based exchange OKEx have also enabled trading with ATOM.

Cosmos’ Community Approves First Official “Transfer Of Atoms”

As CryptoGlobe reported on April 23, 2019, the developers of Cosmos reached a key milestone that involves the beginning of “Phase II,” which is essentially a roadmap for the blockchain interoperability platform’s next phase of development. This, after Cosmos’ community members approved the platform’s first official “transfer of ATOMS.”

According to available data, Cosmos currently has 100 validators securing its network, out of a total of 111 eligible (or qualified) validators. Other data related to Cosmos shows that its blockchain network has relatively fast block times of around 6-7 seconds.

Cosmos Governance Has Seen Very “High Voting Participation”

Cosmos’ governance, which is based on the PoS model, has reportedly experienced “impressively high voting participation rates in the proposals leading up to activating Phase II, with participation exceeding the minimum 40% quorum needed to pass each proposal.”

Cosmos, which is also referred to as the “Internet of Blockchains,” features a “built-in on-chain governance system” that lets “delegators and validators” cast their vote on “proposals to signal future changes to the [Cosmos] Hub.” As noted by Cosmos’ development team:

Once specific changes are approved by governance, Cosmos Hub validators can upgrade their software accordingly in order to enable new features.

Bitfinex Wants to Offer 100x Leverage For Crypto Derivatives Trading

Michael LaVere
  • Bitfinex will offer 100x leverage trading for cryptocurrency derivatives
  • According to the exchange's CTO, the hedging product is "ready for prime time"

Cryptocurrency exchange Bitfinex revealed it wants to offer derivatives products with up to 100x leverage for cryptocurrency traders. 

Hedging On Cryptocurrency Derivatives

Chief Technology Officer Paolo Ardoino told The Block on June 25 that the cryptocurrency exchange was ready to ship a 100x leverage product for certain users. According to the post, the project has been under development for some time and is “now ready for prime time.” 

The product was referenced in last month’s whitepaper published by Bitfinex for its $1 billion private token sale of LEO, stating

“Qualified Bitfinex account holders will be able to trade a new hedging product through a derivatives wallet.”

The whitepaper originally claimed that the new hedging mechanism would be released by the end of June, a timetable that fits with Ardoino’s “ready for prime time” statement. 

Ardoino confirmed that only “verified” customers will be allowed access to the product, given the risks involved in such highly leveraged trades. 

The CTO also took to Twitter to quell user concerns over Bitfinex’s existing 3.3x margin trading. Ardoino explained 100x leverage will be “optional,” and that their current leveraged trading products will be unaffected by the release. 

Big Risk, Big Reward

Bitfinex is looking to compete with rival exchange BitMEX, who already offers 100x leverage through its bitcoin perpetual swap contract. However, Bitfinex claims its product is designed as a legitimate hedging tool for clients, rather than a gambling mechanism. 

Max Boonen, CEO of trading firm B2C2, believes the product will only appeal to retail hedgers, as large investors will shy away from the risks involved in 100x trading. 

According to Boonen, 

“There’s nothing wrong inherently about 100x. But as a commercial hedger you want lower leverage margin. The larger investor wouldn’t want to take the risk of 100X, typically. They don’t want to go balls to the wall.”

The cryptocurrency derivatives market has been heating up. Last week bitcoin-bull Mike Novogratz’s Galaxy Digital announced plans to offer cryptocurrency options contracts.

Binance has also reportedly been exploring futures trading. On June 24, Binance CEO Changpeng Zhao tweeted the exchange had executed its first margin liquidation for a BTC short.