London-based Bitcoin exchange which was founded in early 2013 recently announced that it will be adding its set of cryptocurrency exchanges.
Coinfloor will be launching a crypto futures exchange, with it’s calling CoinfloorEX. CoinfloorEX is a crypto futures exchange specifically designed to unlock the financial potential of cryptocurrency and enable more transparent participation in the dynamic crypto futures market. It will be offering institutional grade risk management and governance, traders, huge funds, and miners will get bitcoin futures at scale through specifically designed cryptocurrency contracts and operational controls.
The CEO and Co-founder of UK’s top cryptocurrency exchange Coinfloor, Obi Nwosu emphasized on their main goal stating; Our mission is to build a bridge between fiat currency and cryptocurrency to drive the stability and sustainability of cryptocurrency.
He went on to say: Numerous market participants are calling on existing cryptocurrency exchanges that provide futures contracts to switch from cash to physical settlement. However, making that transition will be very difficult for them to achieve.
We understood this requirement to the market. He ended his statement by saying: “Now, institutional investors and traders can capitalize on market dynamics, within their own risk parameters and in line with their individual trading strategies.”
On their website, Coinfloor insists that it has launched the first-ever physically delivered cryptocurrency futures contracts with the CoinfloorEX. On the second paragraph of the CoinfloorEX release, it states that the contracts were created purposely to protect investors and traders against price slippage on positions at the time of settlement, as well as concerns of market manipulation. Coinfloor is part of the first companies to give the no-fee trading model a chance, however, fees were later reestablished by the end of the year 2017. It is also an early adopter of solving the normal two-step conversion between fiat currency and bitcoin. These days the company is still serving as an active member in courting regulators to take crypto much more seriously.
This case the project looks more likely to be the physical delivery part of bitcoin futures. Also found in the second paragraph, the company states that Settlement is based on physical delivery rather than an index price from across other exchanges, which provides maximum pricing transparency. The paragraph ended with the following statement which notes Access to Coin floor’s spot opportunities for longer-term currency appreciation or through meeting Bitcoin-denominated obligations.
As for the problem with hackers, Coinfloor is expecting it and states that security of the exchange is underscored by 100 percent multi-signature cold storage cryptocurrency custody, safeguarding client portfolios from theft, loss or other security issues associated with partially online or online only storage of assets. Coinfloor also provides monthly solvency audits of Bitcoin balances, which gives institutional investors assurance that Coinfloor has sufficient Bitcoin liquidity to manage market fluctuation.