According to a report, upcoming London-based crypto derivative exchange Blade has secured funding amounting to $4.3 million. Among the exchange’s investors are popular companies including Coinbase, Slow Ventures, SV Angel, A.Capital, as well as Justin Kan and Adam D’Angelo.
Blade, which is expected to launch in three weeks, will offer perpetual crypto swap contracts with leverage as high as x150. In this arrangement, which shares a few differences with future contracts, investors either on short or long term positions tend to gain profits from selling off crypto assets. Perpetual contracts are different from futures in that they have no expiration date.
Blade Offers Perpetual Contracts And x150 Leverage
The crypto derivatives exchange will provide users with options of 150x leverage on both BTC/USD and BTC/KRW contracts. These two contracts are the only fiat-based products in which BTC is paired with fiat. The remaining are purely crypto pairs. These pairs include XRP/USDT, BNB/USDT, ZEC/USDT, XMR/BTC, and DOGE/USDT. With the inclusion of a Korean Won fiat product, the exchange derivative, which aims to provide services similar to BitMEX, is primarily targeting the Asian crypto market.
Big industry names like Gate.io and Okex have already introduced similar features on their platforms and this confirms the likely future adoption of perpetual contracts. Although BitMEX recently fell under regulatory scrutiny and has seen a massive outflow of funds, Blade aims to put forward competition for market recognition. According to Jeff Byun who cofounded Blade,
Coinbase and Binance are building this foundational structure for crypto, but I think we are too and in a sense that derivatives are at their core about risk transfer, we want to be building the foundational layer for risk transfer in the crypto markets.
In the long term, we want to be the CME of crypto.
1- Do not invest in every ICO – most of them are a scam.
2- Crypto is a heavily manipulated commodity and the price can change at any moment.
3- The creation cost of a coin represents the “wholesale” price – It is always better to buy when the price is close to the creation cost.
4- Crypto has a natural cash flow that dictates the selling pressure. Like, 1800 bitcoins are mine each day so 1800 bitcoin must be bought at the current price (“means market needs new $18 millions of investment every day if the price is $10,000 to maintain the current price“).
5- Patience and timing are key to making a profit:
Buy, when the price is close to the creation cost.
Sell, when the price is way high off the creation cost.