SINGAPORE, Jan. 7, 2021 /PRNewswire/ -- EQUOS, the
cryptocurrency exchange of Diginex Limited (Nasdaq: EQOS), the
digital assets financial services company, announced today that it
has launched its Bitcoin (BTC) Perpetual Futures Contract
(BTC/USDC(F)).
The successful launch of the BTC Perpetual is a major milestone
in the roadmap of derivative products that are being introduced by
EQUOS. Derivatives linked to traditional financial assets like
equities, commodities or foreign exchange often eclipse the value
traded in the underlying spot markets by hundreds of times.
Derivative products are nascent in the digital asset industry
and are presently not offered by some of the major digital asset
exchanges. From near nonexistence only a few years ago, the size of
the virtual currency derivatives market has begun to show signs of
its immense growth potential, growing at over four times the spot
market during the third quarter of 2020[1] and reaching
a volume peak of $67 billion in a day
at the end of November[2].
The Perpetual contract is well suited to the current trading
environment and can be conveniently used for macro position taking
as well as for risk management purposes. The product is designed to
ensure that professional traders and institutional investors can
always benefit from transparent and fair market conditions. Prices
and liquidity on the EQUOS exchange are only provided by
independent market makers and EQUOS does not make markets on its
own platform, ensuring that all traders always have equal
visibility of the orderbook.
In addition, the EQUOS BTC Perpetual contract is underpinned by
a Liquidation Platform that is exclusively dedicated to handling
liquidation events. Pricing in the pool is provided by several
independent market makers that add depth and price competition to
ensure that liquidation orders are executed at the market price. If
there is insufficient liquidity to handle the size of liquidated
positions, the main EQUOS order book can act as a backup. EQUOS
also provides a final backstop for liquidation events through its
Liquidation Reserve, which is part funded by liquidation fees and a
portion of trading revenues.
Richard Byworth, CEO of Diginex
commented: "A functional, robust derivatives market is critical to
providing liquidity and risk management opportunities for traders
and is key to attracting institutional investment into
cryptocurrencies and digital assets more broadly."
"Our goal is to develop product with functionality that will
facilitate wider institutional and professional trader adoption of
cryptoassets. This is just the first in a product suite that will
offer investors more dynamic hedging tools, fairer liquidation, a
platform that is not trading against its users and reputational
protection for investors seeking a KYC/AML compliant
ecosystem."
Neil Sheppard, COO Financial
Services at Diginex said: "We are pleased to bring to the market a
perpetual product which is uniquely designed to ensure that we can
deliver optimal opportunities to manage risk and exposure for
professional and institutional traders as well as retail customers,
while also providing a fair liquidation process."
"In this way, traders will be able to gain exposure to the
largest cryptocurrency by market capitalization, and benefit from
price movements in a controlled environment."
About Diginex
Diginex is a digital assets financial services company focused
on delivering a cryptocurrency and digital assets ecosystem
offering innovative product and services that are compliant, fair
and trusted. The group encompasses cryptocurrency exchange EQUOS.io
as well as an over-the-counter trading platform. It also offers a
front-to-back integrated trading platform Diginex Access, a
securitization advisory service Diginex Capital, market leading hot
and cold custodian, Digivault and funds business Bletchley Park
Asset Management. For more information visit:
https://www.diginex.com/
Follow Diginex on social media on Twitter @DiginexGlobal, on
Facebook @DiginexGlobal, and on LinkedIn. Follow EQUOS.io on social
media on Twitter @EQUOS_io and on LinkedIn.
Forward Looking Statements
This press release includes forward looking statements that
involve risks and uncertainties. Forward looking statements are
statements that are not historical facts. Such forward-looking
statements are subject to risks and uncertainties, which could
cause actual results to differ from the forward-looking statements.
These risks and uncertainties include, but are not limited to,
those factors described in the section entitled "Risk Factors" in
Diginex's Registration Statement on Form F-4 jointly filed bv
Diginex and 8i Enterprises Acquisition Corp. ("8i")pertaining to
the Business Combination (the "Form F-4"). Important factors, among
others, that may affect actual results or outcomes include; the
inability to recognize the anticipated benefits of the proposed
transaction, which may be affected by, among other things, the
amount of cash available following any redemptions by 8i
shareholders; the ability to meet Nasdaq's listing standards
following the consummation of the proposed transaction; and costs
related to the proposed transaction. Important factors that could
cause the combined company's actual results or outcomes to differ
materially from those discussed in the forward-looking statements
include: Diginex's limited operating history and history of net
losses; Diginex's ability to manage growth; Diginex's ability to
execute its business plan; Diginex's estimates of the size of the
markets for its products; the rate and degree of market acceptance
of Diginex's products; Diginex's ability to identify and integrate
acquisitions; potential litigation involving Diginex or the
validity or enforceability of Diginex's intellectual property;
general economic and market conditions impacting demand for
Diginex's products and services; and such other risks and
uncertainties as are discussed in 8i's prospectus filed in
connection with its initial public offering and the proxy statement
to be filed relating to the business combination.
Diginex expressly disclaims any obligations or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Diginex's
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is
based.
[1] TokenInsight: 2020 Q3 Cryptocurrency
Derivatives Exchange Industry Report, November 10, 2020
|
[2] Crowdfund
Insider, 2020-11-28 Crypto Derivatives Market Trading Volume Surged
from $38.3B on Nov 21 to $66.9B on Nov 27, 2020 after Bitcoin Price
Crash: Report (crowdfundinsider.com)
|
View original
content:http://www.prnewswire.com/news-releases/equos-launches-bitcoin-perpetual-futures-contracts-301202823.html
SOURCE Diginex Limited