Bitfinex Upgrades System to Go Live with Crypto Derivatives

Cryptocurrency exchange Bitfinex is launching its crypto derivatives products that will let traders make bets on the price of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term with up to 100x Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term. Screenshots confirm the new launch for its latest system upgrade that lays the foundation for Bitfinex’s derivatives trading products. It also shows that the exchange will start allowing users to transfer ‘balances’ to their ‘Derivatives Wallets.’

Meanwhile, Bitfinex is undergoing scheduled downtime today, and the exchange says it could take up to three hours before the exchange is online again. Bitfinex says the upgrade will “the stability and scalability of the iFinex infrastructure and new trading products.”

Bitfinex’s new offering aims to create a crypto-derivatives market that mimics the traditional markets in infrastructure. To push the wave of crypto-adoption within the derivatives realm, it mainly focuses on structured investments products whose value is linked to the performance of underlying cryptocurrency markets.

Significantly, the highly leveraged trading of cryptocurrencies will give qualified users an opportunity to hedge as well as buy and sell using a 1:100 leverage.

The launch also comes as most major crypto venues are setting their sights on popular crypto derivatives offerings on the market, such as BitMEX. Binance, for example, has rolled out margin trading functionality, although it is starting with a conservative approach and capping leverage at 3x. Bitfinex does already offer crypto margin trading, although the exchange has capped the leverage at 3.33x.

The derivatives product initially was referenced in a whitepaper published by Bitfinex for its $1 billion private token sale of LEO as beta testing was in progress in June. But shortly after this announcement, Bitfinex and Tether’s parent company, iFinex, decided against holding a public sale offering for its LEO tokens as they preferred not to undergo the operational and regulatory hassles of opening the offering to the general public.

A busy year for Bitfinex

Bitfinex has had a busy year, fighting legal battles and media scrutiny about the stability of its stablecoin. The crypto platform and its affiliated stablecoin issuer Tether asked a US judge to dismiss the New York attorney general’s case against them, saying they did nothing wrong as they have never targeted investors in the state.

The US authorities have stepped up their enforcement against the crypto firms with the NY attorney investigating them for fraud because of duplicitous statements about the digital tokens’ backing. Specifically, Bitfinex is accused of using $700 million from Tether reserves to cover up losses of $850 million

The crypto exchange defended itself saying the money was deposited with a Panamanian-company called Crypto Capital but then was seized and safeguarded in several jurisdictions, including Poland, Portugal, the UK, and the United States, all through no fault of Bitfinex.