Huobi Global announced on the 28th of November, at the Cryptofrontiers conference in New York City, that it will be launching a derivative market, called Huobi Derivative Market (Huobi DM). On Huobi DM users can trade a variety of cryptocurrency contracts. Huobi DM is available to a select number of countries.
Cryptofrontiers
As a closed-door event, cryptocurrency conference ‘Cryptofrontiers’ focuses on providing information about cryptocurrency trends as well as developments in blockchain technology. Professional investors and industry experts held panel discussions and the latest industry updates were released to attendees.
Huobi DM
Huobi users have the ability to purchase cryptocurrency, like Bitcoin (BTC) in the form of contracts at a predetermined price for a specific time in the future. By offering this service, Huobi is once again expanding its business with yet another financial service in the digital asset industry.
Joshua Goodbody, General Counsel of Huobi Global Institutional, stated in a recent interview with Bitcoin Magazine: ‘Our derivative contracts are agreements to buy or sell an asset on a specific future date and at a specific price. Once the derivative contract has been executed, both counter-parties will buy and sell at the agreed-upon price irrespective of the actual market price.’
Huobi DM sets itself apart from competitors by:
- Their User Protection Funds worth 20,000 BTC
- Their fee structure that is beneficial for market makers that pay no trading fees and receive financial bonusses
- Their flexibility in leverage offered. 1x, 5x, 10x and 20x is offered by Huobi DM
- Their speed
- Their superior risk management
Huobi DM is currently in its beta-testing version. The official roll-out of the derivative platform will commence shortly. A full official instruction tutorial on how to use Huobi DM can be found here.
Huobi DM now offers three potential rewards for using the beta platform version. Users can: earn Huobi Tokens (HT) for simply using the platform, trading a certain amount of contracts or offer advice to other Huobi DM users. More details on how to get access to those rewards can be found here.
Concluding remarks
Huobi launching a derivative market is a sign of a maturing market in my opinion. Established businesses in the cryptocurrency industry are expanding and that’s a positive step towards creating an all grown-up industry. Coinbase, together with Blackrock, are applying for a Bitcoin ETF with the SEC, Gemini exchange founders have created their own stablecoin and Poloniex’s was acquired by Circle a couple of months ago for approximately $400 million dollars. Those are all signs that large digital asset-based companies are not going away soon and they are only moving forward. As I see it, regardless of the current bearish market conditions, the cryptocurrency industry is maturing and prices will find a bottom at some point after which new investors will enter the market and prices will follow these developments.
If you do not have a trading account on Huobi Global yet, you can sign up using this link.
Disclaimer: This article is not intended as investment advice. It is just my personal opinion about Huobi’s new app. You should always do your own research #DYOR. Huobi Global incentivizes me for writing this article and encourages me to express my own opinions.
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