CoinFLEX Addresses Price Manipulation with Physical Delivery of Bitcoin Contracts

Asia Blockchain Review
August 31, 2019
CoinFLEX Addresses Price Manipulation with Physical Delivery of Bitcoin Contracts

CoinFLEX — formerly known as Coinfloor — announced that retail investors for Bitcoin futures will be paid in Bitcoin once their contracts expire instead of traditional cash settlement to reduce the risk of price manipulation in the market.

Offering Physically Settled Bitcoin Futures to Traders in Asia 

As Bitcoin currently has the largest share in the crypto market, CoinFLEX is now providing its traders with the opportunity to invest in Bitcoin futures contracts, claiming it is the first exchange to offer physical delivery.

According to Tron Weekly Journal, the Hong Kong-based exchange said that physical delivery of Bitcoin futures is much less likely to encounter price manipulation, in contrast to contracts settled in cash.

Regardless, CoinFLEX’s new service goes to head-to-head with Intercontinental Exchange’s  Bakkt exchange, also slated to launch physically delivered Bitcoin futures contracts from September 23rd.

Kenetic Capital Questions the Need for Physical Settlement

Mark Lamb, CEO of CoinFLEX, said the issue of price manipulation in cash-settled markets affects all traders. 

“Professional and retail traders alike are affected by price manipulation in the cash-settled futures market. In physically delivered contracts, anyone long at expiry receives the underlying bitcoin. There are no formulas involved,” Lamb said.

On the other hand, Benjamin Roth, global head of trading at Kenetic Capital, has a different take. While he admitted that physically delivered contracts are less likely to suffer manipulation, Roth also said he hasn’t seen “much evidence of price manipulation in the cash-settlement market.”

Nonetheless, Roth agreed that there is a demand for physically delivered Bitcoin futures contracts.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
South Korean Mobile Service Provider Unveils Blockchain OS
Union Mobile, a major mobile service provider in South Korea, has recently unveiled its blockchain o...

September 22, 2019

UK, US Top List of Most Crypto Exchanges by Country followed by Hong Kong and Singapore
Blockchain analytics platform Crystal has revealed a breakdown of the countries with the most regist...

September 22, 2019

Thai Oil Major PTT to Create Renewable Energy Blockchain Platform
Thai energy giant PTT has partnered with Energy Web Foundation to launch a blockchain-based platform...

September 22, 2019

Five Privacy Coins to be Delisted at OKEx South Korea
The South Korean branch of OKEx has announced it will be delisting privacy coins including Dash and ...

September 21, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us