Facebook’s proposed cryptocurrency Libra is quite a big idea as it intends to serve financial service to around 2 billion members. But, at present, the social media giant is keenly looking to confiscate all the regulatory hurdles in its way to hit the financial landscape.
While the firm is still uncertain of its launch date, a leading crypto-futures exchange CoinFLEX is offering physically-delivered derivatives that are designed to settle based on whether or not Facebook launches Libra in 2020.
The news broke out by Bloomberg today, i.e October 7 and reported that the exchange intends to launch these contracts via an Initial Futures Opening (IFO) on Oct 24. In essence, the IFO concept is something that bets on the token which doesn’t essentially exist – accordingly, the Seychelles-registered CoinFLEX exchange said that it will set the price of futures contract at 30 cents. The reports mentioned that the 30 cents reflect a roughly 30% likelihood that Facebook kicks-off Libra by December next year.
Interestingly, as per its CEO Mark Lamb, the 30 cents price was finalized following the consultation with various investors and traders. Also, he stated that investors will have a quick entry in the secondary market to trade the instrument within 30 minutes of the IFO. Following the short or long position, investors can either enjoy Libra or lose their entire initial investment. It means that these types of contracts will enable you to bet on tokens even if it doesn’t exist and upon entering the contract, if the token launched at prescribed date (in this case December 2020) traders will receive Libra or they will lose their funds invested initially.
$0.30 apiece is the 30% chance that Libra will be operational by December next year. It isn’t the first of its IFO contracts by CoinFLEX, earlier the exchange also offered IFO for Polkadot’s “DOT token”, a blockchain interoperability project.
Image Source – Coinflex Twitter