Cryptocurrency derivatives exchange CoinFLEX is reportedly looking to offer traders physically-settled Libra futures contracts, allowing traders to bet on potential launch delays of the Facebook-led cryptocurrency.
According to Bloomberg, CoinFLEX is set to hold an initial futures opening (IFO) on October 24. Its physically-settled futures will deliver traders Libra tokens if the cryptocurrency has been launched by December 30, 2020 at their settlement date.
If Facebook hasn’t by then launched Libra, traders will lose their investment and receive nothing. The IFO will price Libra futures at 30 cents, which according to CoinFLEX CEO Mark Lamb equates to a 30% chance Libra will be operational by the settlement date.
Traders may, however, start trading after the initial offering. So if a trader believes there’s an 80% chance Libra will be operational by the settlement date, he would pay the equivalent of 80% of a Libra to then received a full Libra, Bloomberg clarifies.
It’s also possible to bet against Libra’s launch. Both longs and shorts will have their gains capped at $1.1 per Libra to “account for changes in the value of the currencies backing the stablecoin.”
Mark Lamb was quoted as saying:
Facebook has the ability to rival the entire global banking system from day one, but, because of that fact, when that first day will be is far from certain. The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.
Facebook’s CEO Mark Zuckerberg has revealed he is “really focused” on ensuring Libra’s launch goes well, but dodged a question regarding the cryptocurrency’s launch date. In its latest quarterly report, the social media giant admitted there is no guarantee Libra or any associated products and services “will be made available in a timely manner, or at all.”