While regulators are concerned over Facebook’s proposed Libra, the crypto companies see an opportunity in the prospect.
Crypto futures platform CoinFlex is launching a derivative based on the likelihood of the launch of Libra next year.
Reported by Bloomberg, the derivatives will allow traders to take a bet on whether Facebook will be able to launch Libra by December 30, 2020.
The Seychelles-registered exchange will hold an initial futures opening (IFO) on October 24, to distribute the contracts among potential investors. The initial price of Libra futures will be set at $0.30 apiece, a number decided after a discussion with investors and traders. CoinFLEX CEO Mark Lamb explained that the figure depicts the 30 percent chance of Libra to hit the market by the proposed date.
Investors of the futures instrument will be able to trade the instrument on the secondary market within 30 minutes of the offering.
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The exchange will allow traders to take both long and short positions on the launch of Libra. However, the gains will be capped at $1.1 per Libra to account for changes in the value of the currencies backing the stablecoin.
Will Libra finally see the light?
Announced in June, Facebook is aiming to launch its digital currency in mid-2020. However, due to increased regulatory hurdles, many are suspecting a delay in the launch of Libra.
In a recent interview, Mark Zuckerberg, founder and CEO of Facebook, dodged to directly answer about Libra’s launch date saying “obviously we want to move forward at some point soon.”
Bertrand Perez, CEO of the Libra Association, added to the conundrum saying: “We cannot say that we won’t launch in 2020, or that we are certain to launch on a particular date in 2020.”
Facebook is also facing uncertainties from its partners who initially put a bet on the project and become members of the Libra Association. As Finance Magnates reported, PayPal became the first Libra Association member to end its association with the project.