Despite the cryptocurrency market taking a serious beating the past few months, the U.K has just announced some big news. Coinfloor, a London-based cryptocurrency exchange, announced that it would be starting its own bitcoin futures exchanged named CoinfloorEX. This new exchange will offer bitcoin futures “at scale” through their own specific contracts and operational controls. The futures contracts are available to traders, hedge funds, and miners.
CoinfloorEX claims they will offer the first “physically delivered cryptocurrency futures contracts”, designed specifically to protect investors from price slippage on positions at the time of settlement. The settlements made by CoinfloorEX will be based on physical delivery rather than the index price that’s across all other exchanges, which in turn provides true pricing transparency.
The company goes into further details in the official statement saying:
“Access to Coinfloor’s spot exchange enables investors to easily convert Bitcoin to Fiat currency post-physical delivery, creating opportunities for longer-term currency appreciation or through meeting Bitcoin-denominated obligations.”
The development team behind this project is taking security as a top priority, which is necessary given the number of hacks that have occurred as of late. The security of the exchange is underscored by a 100 percent multi-signature cold storage cryptocurrency custody facility. This aims at completely safeguarding client portfolios from theft and other security issues that occur when storage assets are held partially or fully online. An additional feature they are adding monthly audits of the Bitcoin balances, which gives ease to the investors to assure CoinfloorEX has enough Bitcoin liquidity to manage the high market fluctuations.
These futures will be launching sometime next month, despite the downward price of Bitcoin currently. Will the announcement and spread of the news, help drive up the price of Bitcoin like it did when the U.S announced their futures?
Whatever happens, this is still great news for the cryptocurrency market, despite its recent slaughtering due to Google banning crypto relative ads.
Featured Image: Krypto