Xena unleashes crypto-settled derivative contract for GRAM token
Crypto-asset trading platform Xena Exchange has launched the “first-ever leveraged” cryptocurrency-settled derivative contract for the GRAM token.
First contract will be for Bitcoin to USD
According to Xena, this is a step towards the liquidity of GRAM, as Telegram TON project investors will be able to trade the derivative contracts before the GRAM tokens are actually issued.
Anton Kravchenko, CEO of Xena Exchange, says: “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. 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.”
The Telegram TON blockchain project’s initial coin offering (ICO) in 2018 raised $1.7 billion from private investors.
The first cryptocurrency-settled derivative contract to be launched will be for Bitcoin to USD.
The launch provides people with the opportunity to invest in cryptocurrency through contracts and aims to “attract institutional and traditional investors, generating cash flows into the crypto market, increasing the trading volume, and lowering volatility”.
Xena issues derivative contracts called Xena Listed Perpetuals, designed to focus on cryptocurrency market specifics. While allowing for high leverage (up to 100x), the firm says it uses built-in mechanics to protect traders from sudden price swings and unnecessary liquidations.
Currently, Perpetuals make the settlement through BTC, and later, the settlement of fiat currency will also become possible and the risk of BTC/fiat currency volatility losses will be rendered null. Additionally, Perpetuals do not expire, which Xena reckons gives them an advantage toward futures, and they adopt the current spot price of the underlying asset or index.
Kravchenko explains: “In traditional markets, derivatives trading is ten 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. The indices simplify investments and reduce the risks for investors due to diversification.”
Xena Exchange was founded by previous employees of investment banks and technology companies, including JP Morgan, Deutsche Bank, UBS, Russian Stock Exchange, and Kaspersky Labs.
Back in November 2018, Xena completed a $3 million Series A round of financing led by Klever Internet Investments.
