December 28: Crypto Industry Will Face One of the Biggest Losses

CIO of Blocktower Capital, Ari Paul, has made the largest-ever speculative play using BTC options during December of 2017

The options were purchased in 2017 for nearly $1 million when BTC was trading for approximately $16,200.

The call options have a strike price of $50,000, meaning that BTC would have to spike by over 1,400% in the next two and a half weeks (a near-impossibility for any asset) in order for the contracts to retain any value, as they will expire to be worthless should prices fail to sit above $50,000 as of December 28.


3,621 USD -0.48%
Volume, 24h
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Crypto Exec Wary Of Ethereum Futures, As Bitcoin ETF Talk Mounts

Launch of Ethereum Futures Still ‘Up In The Air’ In mid-December, as CBOE’s and CME’s Bitcoin (BTC) futures offering turned one-year-old, rumors began to mount regarding a similar vehicle for Ethereum (ETH). As reported by Ethereum World News, the U.S. Commodities Futures Trading Commission, the financial regulator that holds jurisdiction over certain crypto instruments, began to look into Ether. In a public release, the somewhat crypto-friendly body wrote: The RFI [Request For Information] also seeks to understand similarities and distinctions between Ether and bitcoin, as well as Ether-specific opportunities, challenges, and risks. As this seemingly innocuous development broke, many crypto pundits and commentators began to speculate that the entity was looking to get feedback on the Ethereum project to precede a ruling on ETH-backed vehicles. While it seems that strides were made behind closed doors, a recent report from The Block claims that providers of products similar to Ethereum futures themselves are skeptical of such offerings. Speaking to the outlet in an interview, Paul Chou, chief executive of crypto investment startup LedgerX, explained that there’s only a 50/50 chance that ETH vehicles go live in 2019. Backing his quip, Chou explained that many proposals for the aforementioned product type are “premature,” just as Bitcoin exchange-traded fund (ETF) applications were just two years ago. The LedgerX chief’s sentiment was echoed by other pundits that The Block spoke to. Former CFTC advisor Jeff Bandman, the head of a cryptocurrency consultant group, explained that Ethereum’s proposed plan to integrate Proof of Stake (PoS) may complicate regulations, specifically due to the potential risks. Nelson Rosario, an attorney with hands in the proverbial crypto jars, also noted that staking may be seen as suspicious in regulators’ eyes. Likely referencing physically-held futures, Rosario explained that live staking with Ether may complicate products to high hell while confusing network developers in the process. While the prospects for ETH-backed futures in America seem ‘up in the air’, across the pond, there may be a different story. Per previous reports from us, a Hong Kong-headquartered, Roger Ver-backed up-and-coming crypto startup, now named CoinFLEX, is planning to offer physical Ether futures with up to twenty times leverage. It wasn’t divulged when the vehicle would go live, but firm founder, Mark Lamb, seemed quite optimistic, both for his firm and the future of crypto-related derivatives. In a recent interview with Bloomberg, he claimed: Crypto derivatives could become an order of magnitude larger than spot markets and the main thing that’s holding back that growth is the lack of physical delivery… Volumes are reduced because of a problem of trust when it comes to cash-settled trades. Interestingly, many analysts and researchers are unconvinced that such a product would push the value of Ether higher. In fact, in early-September of last year, Tom Lee, Fundstrat’s in-house controversial crypto commentator, claimed that the product would hurt ETH, but aid BTC. Lee remarked that Ether futures will allow speculators to weigh down on the price of ETH. Despite Ethereum Skepticism, Bitcoin ETF Hype Remains All this talk surrounding Ethereum futures comes amid a newfound hype for Bitcoin ETFs and products of similar caliber. And interestingly, while futures are seen as less demanding than ETFs, analysts have high hopes for the latter, compared to the former. Just recently, Bitwise Asset Management filed a Bitcoin ETF application to the U.S. Securities and Exchange Commission via an S-1 Form. Just days earlier, the Winklevoss Twins, the two behind one of the first, if not the first Bitcoin ETF proposal (which was denied), made it clear that they expect to see such a product through, whether it takes months, years, or even decades. And, a few days before that, Bloomberg sources claimed that Japan’s regulators were looking into allowing Bitcoin ETF proposals to be filed. Yet, these claims were quickly rebutted by official spokespeople. Regardless, this accentuates how there continues to be a discussion on the matter, even amid an extended price lull. Title Image Courtesy of eberhard grossgasteiger on Unsplash The post Crypto Exec Wary Of Ethereum Futures, As Bitcoin ETF Talk Mounts appeared first on Ethereum World News.
Ethereum World News

Digitex Futures Launches Beta Version of Its Commission-Free Bitcoin Futures Exchange

Providence, Seychelles — January 16, 2019 — Digitex Futures, a non-custodial commission-free futures trading exchange, has begun onboarding traders to the Beta version of its platform. Marking exactly one year since the Digitex ICO, which sold out in 17 minutes, the ambitious crypto startup has taken CEO Adam Todd’s vision from an idea to reality in just 12 months. The Beta of the Digitex Futures exchange is a closed version that will officially start onoarding traders this week. The company’s developers will be adding more traders to the exchange gradually and continuously throughout Q1 of 2019. The general public launch is currently set for Q2. While the exchange will offer additional futures markets including Ethereum, and Litecoin futures, the Beta version of the exchange will offer Bitcoin futures only. Adam Todd CEO and Founder of Digitex Futures comments, “We’re delighted that the first version of our commission-free exchange is now ready. This period before quarter two public launch will be crucial in ensuring that any bugs are found and reported, that user feedback is taken into consideration, and that all features are working flawlessly. In less than a year, we’ve already done what we said we would and now we’re ready to shoot for more.” Exclusive Beta for Bitcoin Futures Trading Digitex decided to roll out the exchange to a small group of friendly traders first to provide the perfect testing ground before public launch. It’s not a random group of traders who will be taking the exchange through its paces. Traders on the platform had to compete for their slot in the Beta and each will have 1,000 DGTX airdropped into their accounts. The top 10 winners, who were the first names on the Digitex Futures Early Access waitlist, received a massive 100K DGTX each. But this isn’t just “free money.” The Beta version of the exchange doesn’t offer traders the possibility of depositing or withdrawing funds. The company realized that the best way to ensure a bug-free robust exchange was through active traders making as many trades as possible. All testers are required to trade with their DGTX and will be encouraged to hand over their feedback, report any possible glitches, and share their experiences with the rest of the Digitex Community–one of the largest in the industry. The Digitex Futures Telegram group is consistently among the most active and engaged on the platform and is staffed 24/7 to answer questions on the chat. Early Access Waitlist Reopens The Early Access Waitlist campaign for the closed Beta version was a roaring success. In just four months, Digitex saw more than 850K signups to its platform. After the first hundred winners were notified, Digitex decided to reopen the waitlist until the public launch goes live. Todd says: “With such a massive interest in our exchange, it doesn’t make any sense to keep the waitlist closed. We’re confident of having well over a million traders signed up by the time the exchange goes live. They’ll each be in with a chance of winning free DGTX and we’ll be able to hit the network effect out of the park and ensure a highly liquid exchange with a high number of engaged traders.” After completion of the Beta version, Digitex Futures will roll out to the public in quarter two of this year, with ambitious plans for the rest of 2019. These include the full incorporation of plasma technology into the exchange to offer decentralized account balances, the offering of additional futures markets, spot trading, and a mobile app. Traders interested in the project can learn how to purchase DGTX here. ### Press Contact Lidia Yadlos About Digitex Futures Digitex Futures Ltd is a non-custodial commission-free futures exchange with its own native cryptocurrency, the DGTX token. As an International Business Company (IBC) located in the Republic of Seychelles, Digitex was founded by former futures and betting-exchange trader, Adam Todd. The exchange will offer cash-settled futures contracts on BTC, LTC, and ETH with zero fees on all transactions. This is a sponsored press release and does not necessarily reflect the opinions or views held by any employees of NullTX. This is not investment, trading, or gambling advice. Always conduct your own independent research. The post Digitex Futures Launches Beta Version of Its Commission-Free Bitcoin Futures Exchange appeared first on NullTX.

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