FTX Adds More Presidential Election-based Futures Contracts

FTX Adds More Presidential Election-based Futures Contracts

Crypto derivatives exchange FTX studies to issue more presidential election-based futures contracts.

FTX representative said:

“What we’re about to come out with is just similar contracts for the top five Democratic candidates.”

The exchange aims to launch presidential election-based futures contracts for Bernie Sanders, Joe Biden, Elizabeth Warren, Pete Buttigieg, and Michael Bloomberg.

Thus, the representative said the products may be released in the next few days.

The five products will have the same structure as that of TRUMP.

FTX prohibits trading TRUMP in some countries

FTX bans the sale of TRUMP futures contracts in some countries such as the European Union, Canada and the UK.

The representative said:

“In a lot of countries, there are various licensing regimes for contracts like this.” 

Cryptolydian earlier reported that FTX has recently launched “TRUMP”, a new product for futures trading that lets users bet on the re-election of President Trump in 2020.

“So far most of the volume has traded on the offer, implying that traders think Trump is likely to win re-election,” the representative said.

However, the TRUMP crypto commodity is essentially a $1-value futures contract if Trump wins presidential election in 2020 and $0 if he does not.

The representative said:

“There are two main reasons that we used a futures contract instead of a smart contract. The first is that futures allow for much more powerful and flexible margin; the second is that a smart contract would rely on a blockchain-based oracle to settle the contract anyway, which would mostly defeat the attempt at decentralizing the result.”

Over many years, crypto derivatives trading has significantly widespread, with exchanges such as BitMEX and OKEx reporting substantial trading volume for their Bitcoin futures trading items. Mainstream finance has jumped into the bandwagon with the introduction of Bitcoin futures trading by the Chicago Mercantile Exchange in 2017.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.