Cryptocurrency stakeholders have been presented with a new way to wager on the price of bitcoin – or even conventional assets – with the formal unveiling of EverMarkets Exchange (EMX)’s derivatives platform. EverMarkets Exchange, a Palo Alto, California-based startup was created in 2017 and made available to a limited audience at the end of May 2019. With effect on Monday, the market is now accessible by members worldwide – however U.S. inhabitants are excluded.
Cryptocurrency Derivatives Exchange
Craig Austin, the Co-founder of EverMarkets Exchange, revealed that the firm is posed to give clients an entry to a world market by exchanging derivatives connected to both crypto and traditional assets, and that while it promotes itself as institutional-grade, EverMarkets Exchange is chiefly interested in the retail market. He added that over the last year and a half, the firm had made one platform to enable dealers from around the world trade world-wide markets collateralized in cryptocurrency. Austin revealed that the crucial idea for the firm is to enable anyone in the world outside the U.S. to send cryptocurrencies to a marketplace and get exposure to the world market, and not just cryptocurrencies but also equity markets.
Types of Swaps
At the present time, EMX presents two products: a bitcoin perpetual swap contract and a U.S. 500 Equity Index perpetual swap. Perpetual swaps are futures contracts without an expiry date; the fundamental asset is never distributed, and payments are periodically exchanged between the buyer and seller. The contract type was primarily intended for the crypto market by derivatives exchange BitMex. As they progress, EMX will explore other traditional swaps, for instance, gold and crude oil, along with different cryptocurrencies to build futures contracts on top of.
Remarkably, while EverMarkets Exchange is not registered as a trading or financial services business by any authority, it is registered in Bermuda. According to Austin, the firm is making an effort to present a more regulatory-safe market by adhering to know-your-customer and anti-money laundering guiding principles. The regulatory environment is projected to change over the next 12 months and the firm wants to be positioned that they’re trading on the platform but they’re also ready for more exchanges and regulations.
According to Austin, the company at this time records a few hundred traders involved in trading activities on its site every week, as a part of the company’s initial testing phase. He revealed that they were testing internally for about two months with friends and family. The company selectively invited external users shortly thereafter. About 25,000 persons subscribed to trial the platform, with the complete list being granted access a few weeks ago.
Development in Progress
The firm formerly raised $1 million in early-stage funding from Bain Capital Ventures and Skype co-founder Jaan Tallinn. EMX is now in the middle of raising another $2 million, as revealed by Austin. These funds will be directed at refining the customer experience, incorporating the building a mobile application. Austin accessed that half of the users access the trading platform on the go, and Although no one really has a great mobile app, being on users’ devices is important to the firm. Similarly encompassed in EMX’s schedule is a plot to launch a spot market for crypto traders, nonetheless this is further down the road and not necessarily a priority.