The Telegram token (gram) has begun trading as a perpetual contract on London-based Xena Exchange. On Mar. 12, the crypto exchange released a derivative contract for grams, with as much as 100x leverage. The Xena-listed perpetual contracts are publicly trad-able and are designed to generate liquidity for the gram token before its release later on this year.
Derivatives Aimed at Institutional Investors
Xena’s derivatives at first appeared on Feb. 28 in beta for a restricted number of users and are now open to the public with impact from Tuesday, March 12. In a statement, Xena chief executive officer Anton Kravchenko described that the development of the derivatives market was targeted at institutional investors.
“This is a significant step for the entire crypto market, considering the importance of the gram token and its potential value as an asset for derivative contracts trading,” Kravchenko said. “This is the first time on the cryptocurrency market where contracts have been used not only to speculate on the rate changes but also to hedge the risks.”
Unlike futures, perpetuals do not expire, indicating they are often deemed a much better hedge versus price drops. However, both contracts represent an arrangement to purchase an asset, in this case the gram token, at a pre-determined price.
Telegram’s Billion-Dollar ICO
Telegram’s TON blockchain project turned into one of the most effective preliminary coin offerings in 2018 after it raised $1.7 billion from private financiers. The public sale was later on suspended. Now Xena is billing its gram perpetuals as an opportunity for “those who missed the opportunity to invest [to be] able to make dividends on the possible rate hikes” through trading on the exchange. At the exact same time, “current gram holders will have the ability to hedge their investments against possible exchange-rate drops,” it specified.
Prior to the gram derivatives released, Xena released derivatives called Xena Listed Perpetuals, designed with a concentrate on the cryptocurrency market. At the minute, perpetuals are settled through bitcoin core. Later on, it is expected settlements in fiat currency will likewise become possible and the risk of BTC/fiat currency volatility losses minimized.
“In traditional markets, derivatives trading is 10 times higher than the volume of the underlying assets. Derivatives, such as tradable indices and futures, are useful for hedging as well as for leveraging trading profits,” Kravchenko opined.
“The indices simplify investments and reduce the risks for investors due to diversification. Thus, we really stress the development of this side of Xena Exchange with Bitcoin and GRAM contracts as the first step,” he added.
What do you think about Xena’s gram token perpetual contract? Let us know in the comments section below.
Images courtesy of Shutterstock.
The post Xena Launches Leveraged Contract for Yet to Be Released Telegram Token appeared first on Bitcoin News.