This impressive feat was recorded by Blade’s ability in using the available mechanics of the equity markets and putting them into cryptocurrency markets.
Blade is a new cryptocurrency derivatives exchange launching in three weeks. Blade is aiming to provide trading for cryptocurrency-based perpetual swap contracts with three new upgrades.
CEO Jeff Byun and his co-founder Henry Lee previously founded OrderAhead, a delivery platform. Although Blade shares very little in common with the previous venture, the duo is bringing onboard most of their previous investors to support them. Blade reportedly raised $4.3 million in seed funding from a bunch of investors. The investors include Coinbase, SV Angel, A.Capital, Slow Ventures, Justin Kan and Adam D’Angelo.
Derivatives exchange tackling perpetual swap contracts
Perpetuals are crypto-native trading tools that CEO Byun says are “arguably the fastest growing segment of cryptocurrency trading.” They allow traders to place a bet on the probable future values of cryptocurrencies in relation to another. The tools do not expire like fixed maturity futures.
The perpetuals contracts will be drawn up using standard, simple contracts. Secondly, the perpetuals will use Tether’s stablecoin USDT for settlement and margins. Lastly, trades can be leveraged up to 150 times their price for cryptocurrency trading pairs.
Blade currently provides a listing of their cryptocurrency pairs for perpetuals. At press time, the upcoming exchange has listed seven different trading pairs. Although Blade is securing investors from Silicon Valley, US investors will not be legally able to participate in the exchange.
The US government agencies have been strict in regulating crypto exchanges, leading to more trading activity taking place outside its jurisdiction. Blade itself is an offshore entity with a US subsidiary, its primary market is Asia.