Crypto backed futures contracts have been the subject of debate ever since the CBOE and CME group started offering Bitcoin (BTC) futures contracts back in mid-December 2017. What happened before the investment instrument went live on Wall Street, is that BTC experienced the greatest bull run to date. By December 17th, BTC was trading at levels of $20,000. After the futures contracts went live, the price of BTC has reduced to current levels of $7,000.
It is with the above example, that news of the CBOE exchange planning on offering Ethereum (ETH) futures sometime this year, that the investment product might be viewed as a double-edged sword to ETH. To start, we might see a rally of ETH to unseen highs as was the case with BTC last year. With the Ethereum futures contracts being scheduled for release late this year, it might be a similar trend for ETH from current levels of around $300 to maybe $10,000. This is given the fact that BTC experienced an increment of approximately 3,300% from September 2017 to December 17th, 2017.
Once ETH pumps to the hypothetical levels of $10,000, we might then see a decline in value as was seen with BTC right after the futures contracts started being traded in December of last year. There is a silver lining if ETH would later decline in that it would be to higher levels of around $2,000.
Ethereum Futures Are Already Available
Another side of the argument is that the anticipated excitement around Ethereum due to the planned CBOE Ethereum futures contracts, might not be as huge as that of Bitcoin last year. This is due to the fact that there are plenty of trading platforms already offering Ethereum futures contracts.
To start is the UK based Crypto Facilities that have been offering futures contracts on the five major cryptocurrencies of Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BTC), Litecoin (LTC) and XRP. There is also BitMEX that has been thriving lately due to its futures contracts on the aforementioned 5 cryptocurrencies as well as Cardano (ADA), EOS and Tron (TRX).
ETH is Ready for Wallstreet
Apart from Crypto facilities, all the other futures contracts on Ethereum have only been available on crypto exchanges and not traditional markets. With the ETH futures contracts by the CBOE, a second cryptocurrency gets the much-needed attention of Wall Street further proving it is a viable investment option.
Danny Kim, Head of growth at SFOX (a crypto trading technology firm), had this to say about the ETH futures:
“Cboe’s offering will enable crypto traders to take both long and short positions in ether, and it’s another step forward to a new accepted asset class. With this, I think the new investment opportunity will take crypto out of the bearish market and reverse to a new bull.”
CBOE President Chris Concannon, added that this could be a possible path to an ETF backed by Ethereum:
“We started down this road in the form of an ETF. A healthy market is a healthy underlying market, derivatives markets, and an ETF. That will take time.”
According to sources, CBOE would be basing its futures on Gemini’s underlying market. CBOE also based its Bitcoin futures on the Gemini exchange in New York and owned by the Winklevoss twins.
The Commodities Futures Trading Commission is doing its due diligence with the product before it gives it a thumbs up for trading. The SEC, on the other hand, does not view ETH futures are violating any securities laws further validating the cryptocurrency and the futures contracts.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata
Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //
The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.
As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021.
“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.
He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”
Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”
Mr. Yamagata has been…
My Crypto Heroes Announces Issuance of MCH Governance Token
Tokyo, Japan, 24th November, 2020, // ChainWire //
My Crypto Heroes is happy to announce the issuance of MCH Coin as an incentive to players in the My Crypto Heroes ecosystem, aiming to allow them to craft a “User-oriented world”. The MCH coin is available on Uniswap with a newly created pool with ETH.
My Crypto Heroes is a blockchain-based game for PC and Mobile. It allows users to collect historic heroes and raise them for battle in a Crypto World. Officially released on November 30th, 2018, MCH has recorded the most transactions and daily active users than any other blockchain game in the world.
What is MCH Coin?
MCH Coin is being issued as an ERC-20 Standard Governance Token. The issuance began on November 9th, 2020, with 50 million tokens issued.
Of the funds issued, 40% are allocated to a pay for on-going development and as rewards for advisors and early investors. 10% are allocated to marketing and the growth of the ecosystem, and 50% are allocated to the community. The Distribution Ratio of the MCH Coin is subject to change via a governance decision.
The MCH coin will be used as a voting right as part of the ecosystem’s governance, with 1 coin being 1 vote. It will also be used for in-game utilities and payments. Additional information can be found here:
During December 2020 the first governance…