‘Prediction Futures’ Offered By CoinFlex to Bet on Libra’s Launch in 2020

The popular crypto derivatives platform, CoinFlex is getting ready to launch physically-delivered future contracts which would be settled based on whether the upcoming Facebook stablecoin, Libra sees a launch in the second half of 2020. According to a report published on 7th October, the new offering is set for release by the Hong-Kong/London-based platform, CoinFlex through an “Initial Futures Opening” (IFO) on Oct. 24.

Relying on Libra

The IFO will set the price of futures contracts at 30 cents, reflecting a roughly 30% likelihood that Libra will launch by December 2020.

Mark Lamb, the CEO of the platform spoke to Bloomberg that the price had been set after consultation with several investors and traders.

As reported by CoinTelegraph:

“Once 30 minutes since the IFO’s launch have lapsed, traders who have not yet participated will be able to trade the contract at prices that better align with their individual estimation of how likely Libra is to launch by Dec. 2020, or the contract’s settlement date.”

So if a trader thinks that it’s 50% likely that Facebook’s stablecoin releases by the time expire, they will pay off 50% of one Libra token. 

Traders will also be able to bet against Lubra even seeing launch next year. With gain for both long and short trades being available and to be capped at $1.1 per Libra to account for volatility in the price of the currencies tethered the token, said Lamb. He told Bloomberg that:

“Facebook has the ability to rival the entire global banking system from day one, but, because of that fact, when that first day will be is far from certain. The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!