The Freedom of Choices: Why Cryptocurrencies Need an Old-School Derivatives Market Ecosystem
Bitcoin, since its launch in 2008, has gone on to cultivate a massive following of ardent supporters, and this is in part due to what the world’s first cryptocurrency represents to its adopters: a break from the status quo. A decade after its inception, there are over 1500 cryptocurrencies or alt-coins available to the public to choose from, yet, one aspect of the crypto landscape remains lacking in the choices it offers; the crypto trading market.
Traditional markets underwent a drastic evolution with the introduction of derivatives financial instruments. The derivatives market expanded the choices available to traders: by hedging, speculating and diversifying their portfolio, traders were now free to bet whether the market dipped or rose. In case of cryptocurrencies, derivatives products are no doubt available, but select exchanges provide traders with crypto derivatives and even the instruments offered are limited, both in number and in variety. Moreover, as of now, no dedicated trading ecosystem exists that is designed to foster the cryptocurrency derivatives market.
A new venture, aptly named International Digital Assets Platform (IDAP) is planning to change the crypto trading landscape by introducing the first ever comprehensive ecosystem for crypto derivatives market. IDAP will expand the freedom of cryptocurrency traders by offering a host of diverse crypto derivatives instruments including crypto based futures contracts, calendar & butterfly spreads, American options and perpetual swaps. On top of these derivatives products, the platform will offer traders multiple types of ETFs for cryptocurrencies, various Crypto Indices and a P2P lending functionality. To support the easy and seamless trading of all these product offerings, the ecosystem will be equipped with a low-latency, high uptime and geo-replicated crypto exchange. Coupled with the exchange will be the Desktop Trading application, providing a Point-and-Click Ladder based Trading Interface, taking after the advanced data visualisation and analytics tools enjoyed by users of legacy trading systems.
The advantages of introducing derivatives ecosystem for crypto assets will be multifold. With multiple trading assets at their disposal, traders will be able to manage their risk and aim for higher gains through strategic trading. On account of improved choices, both in terms of products offered and an advanced trading interface to effectively trade those products, the market will see increased participation from all grades of traders. This increased pool of participants will deepen market liquidity, allowing for higher trade volumes, and better, simplified and inclusive trading experience for the crypto community.
The IDAP ecosystem is a response to the gaps felt by the trading community while engaging with crypto exchanges. The vision behind this project is to extend the choices of the crypto community beyond just spot trading and facilitate diversity in not merely the products traded in the market, but also in the participants who trade those products.
Want to know about the IDAP ICO? Check out https://www.idap.io/ for more information.
Read our White Paper here.
Originally published at www.ccn.com on May 20, 2018.