Funding Success for CoinFlex
Hong Kong-based cryptocurrency futures exchange CoinFlex has successfully closed a funding round, securing $10 million. The news came earlier this week courtesy of the Asia-focused South China Morning Post (SCMP), providing excitement across the crypto community.
The Backers Behind the Funding
Among the key players involved in this round are Roger Ver, the CEO of Bitcoin.com and a notable proponent of Bitcoin Cash (BCH), along with investors from Polychain Capital, NGC Ventures, and Divergence Digital Currency. Interestingly, Polychain Capital and Digital Currency Group had previously supported CoinFlex’s investment consortium back in March.
Set to Target Asia’s Retail Investors
As CoinFlex gears up to expand its footprint, they are specifically aiming to attract Asian retail investors. This strategic move aims to increase liquidity in their trading ecosystem, providing more opportunities for traders eager to engage in the crypto market.
A Unique Take on Futures: Physical Delivery Contracts
CoinFlex is making waves by positioning itself as the world’s first exchange to offer physically delivered Bitcoin (BTC) futures contracts. CEO Mark Lamb emphasizes this model as a shield against price manipulation, asserting that such contracts eliminate the complexities of cash-settled futures. In his words:
“Professional and retail traders alike are affected by price manipulation in the cash settled futures market. In physical delivered contracts, anyone long at expiry receives the underlying bitcoin. There are no formulas involved.”
Debate on Price Manipulation
Lamb claims there has been a notable increase in price manipulation attempts, especially as trading volumes show a stark disparity—with crypto futures markets being 1.5 times larger than their spot counterparts. However, not everyone agrees with Lamb’s assessment; Benjamin Roth, global head of trading at Kenetic Capital, argues that price manipulation is rarely an issue. Roth noted:
“As traders we do not particularly worry about increased volatility going into a contract’s expiry, because traders naturally like to trade on volatility.”
Ripple’s Ongoing Price Manipulation Allegations
Price manipulation concerns are not limited to CoinFlex. Not long ago, crypto trader Peter Brandt voiced accusations against Ripple, alleging that the company behind XRP was manipulating its price to maintain support. He pointed to chart patterns as evidence, warning of a potential crash if that support fails.
The Road Ahead
As CoinFlex embarks on this new journey with fresh funding, the conversation around price manipulation continues to unfold in the crypto space. One thing is for sure—when it comes to trading, the stakes are high, and the dialogue is even hotter!
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