Whenever there's data out on futures contracts liquidation, many novice investors and analysts instinctively conclude that it's degenerate gamblers using high leverage or other risky instruments. There's no doubt that some derivatives exchanges are known for incentivizing retail trading to use excessive leverage, but that does not account for the entire derivatives market. Recently, concerned investors such as Nithin Kamath, the founder and CEO at Zerodha, questioned how derivatives exchanges could handle extreme volatility while offering 100x leverage. When a platform offers leverage or funds the customer to buy for more than the money in the account, the platform takes …
Data shows that AAVE and Polygon (MATIC) traders are currently being paid up to 4.3% per week to long future contracts. In the crypto markets, traders are usually bullish, or at least the majority of retail investors are. This causes an interesting phenomenon as it incentives arbitrage desks and whales to sell futures contracts while simultaneously buying on regular spot exchanges. The above chart shows the incredible 240% gain accumulated in 2021 as crypto reached a $2.58 trillion total capitalization on May 11. The 53% correction that followed over the next week led to a $1.3 trillion bottom, decimating $32 …
Major cryptocurrency exchange Binance has renamed its Tether (USDT) Market to be a combined Stablecoin Market (USDⓈ), according to an announcement published Nov. 26. This will purportedly allow the exchange to support more trading pairs of stablecoins. The exchange also notes that USDⓈ is not a new stablecoin, but the symbol of Binance’s new stablecoin market. Binance will deliver a separate announcement about what exact pairs will be moved or added to this market. The move follows the Nov. 15 announcement that Binance would start listing blockchain payment company Circle’s USD-pegged stablecoin USD Coin (USDC). Prior to that, Binance added …
Keep3rV1 (KP3R) was one of the few altcoins that emerged unscathed from this week’s bearish turn in the crypto market. While many digital assets plunged into the red following the lead of Bitcoin (BTC), which recoiled after recording a new all-time high last week, KP3R added 31.60% against the dollar and 44.17% against BTC between Nov. 12 and Nov. 19. Let's investigate what drove the splendid performance and what factors made the altcoin stand out in the face of the from the bleak dynamics of the wider market? Founder’s magic Much of the momentum underpinning KP3R’s explosive price movement throughout …
In recent years, futures have started to play a pivotal role in the crypto markets. Yet if many of us were asked to explain what perpetual futures are, we'd break out into a cold sweat. Andrew Weiner, VP of MEXC, is on hand to explain how crypto futures work, what they're used for, and provide some fascinating statistics about how large this market actually is. 1. Hello! First off… can you give us a basic definition of what crypto futures are? So basically, a futures contract is an agreement to buy or sell a commodity, currency or another instrument at …