FTX Launches Perpetual Contract Backed by 8 Chinese Cryptos

Amid the endorsement of blockchain by Xi Jinping, the cryptocurrency derivative platform FTX on Tuesday launched a new index tracking eight popular Chinese crypto projects.

Dubbed Dragon Perpetual Futures Index (DRGN-PERP), the index tracks a basket of eight crypto digital currencies – BTM, IOST, NEO, NULS, ONT, QTUM, TRX, and VET – which are added with a weighted average of their price.

Perpetual contracts are becoming very popular in the crypto industry lately. These instruments are very similar to traditional futures contracts and grant investors the ability to profit from selling digital assets, either short or long, similar to futures contracts. However, unlike futures contracts, perpetual contracts have no expiration date.

Many exchanges, including Bithumb and Gate.io, introduced similar contracts but were backed by single digital assets.

The Antigua and Barbuda-based exchange will offer 101x leverage to traders to trade the newly introduced contract.

Founded by a team of Wall Street and Silicon Valley veterans, FTX was incubated by Alameda Research. The founding members of the platform have in-hand experience with trading, and their new crypto platform is offering services like futures trading, leveraged tokens, and over-the-counter (OTC) services.

The platform listed some unusual derivative indices, including one called Shitcoin Perpetual Futures Index, which is backed by 58 low market cap digital assets.

Earlier this year, the company raised $8 million in seed funding from top crypto venture capitals to expand its reach in the industry.

Meanwhile, after a blackout of over two years, the Chinese crypto market is coming back on track amid a speech by the country’s President last week. His endorsement of the blockchain technology has created a new flow of demand in the crypto market and also pushed Chinese blockchain stocks to soar high.

(Photo: pixabay)

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