While we continue to wait for the official launch of the Bakkt Bitcoin Futures platform backed by the International Continental Exchange (ICE), CoinFLEX another crypto startup offering physically delivered Bitcoin Futures Contracts continues to reach new heights.
As per a Wednesday press release, CoinFLEX a subsidiary of UK-based crypto exchange Coinfloor has received new investments in undisclosed amounts from prominent crypto investors — Digital Currency Group and Polychain Capital.
Undoubtedly, the caliber of these investors means it would not be wrong to assume that the CoinFLEX project may likely go on to become a strong competitor or even outshine the yet-to-be-launched Bakkt Exchange.
The project already had strong backers in crypto pioneer Roger Ver, Mike Komaransky and Dragonfly Capital Partners, meaning that scaling from this point should be fairly easy.
Aside from the new investors, CoinFLEX also announced two new additions to their futures contract exchange.
First, they will launch a new token called “FLEX Coin” as a way to improve liquidity on the exchange and reward traders.
The plan is to distribute FLEX Coins to traders daily in proportion to the volume they trade and the total daily volume on the CoinFLEX platform.
Upon receiving the token, traders can then decide whether or not to trade them in exchange for a 50% returns of their total trading fees in the past 24 hours.
The second addition is a stablecoin-to-stablecoin futures contract that will allow traders hedge exposures with zero-index and avoid any chances of settlement manipulation.
Although CoinFLEX only provided these sneak peek information about how the new additions augment their offering, it already gives evidence that they’re innovating to meet the needs of the wider crypto community.
Right now, the days of competition between Bakkt and CoinFLEX are yet to start. But when they do, there are high hopes that it will be worth the current hype and possibly open the floodgates for institutional investors to join the industry.