Ripple in the future can compete with BTC on the market of futures contracts. This claim, several experts interviewed by Coindesk. Read more about the possible withdrawal of XRP in a new niche, read our exclusive translation of CoinMarket.News.
The emergence of futures contracts on the bitcoin was met with much fan enthusiasm, which cannot be said about futures on the Ripple.
In fact, things are not quite right. British startup Crypto Facilities working in the futures market the third most popular cryptocurrency on the blockchain Ripple and a half years. And although CEO Timo Slater (Timo Shlaefer) still did not speak about the product, he believes that recent data point to rising demand for futures XRP.
“We have a pretty good go orders,” said Slater in comments to Coindesk. “And we establish cooperation with several major players in the market to grow further.”
In fact, at that time, as Bitcoin was expecting its first meeting of the Commission on trade in commodity futures are derivatives of BTC, Crypto Facilities began to work with Ripple and offer futures contracts for XRP. As a result, when the Chicago Mercantile giants Cboe and CME Group opened trading futures bitcoin, the company’s monthly turnover Sheflera from the sale of the same contract on the XRP already accounted for 14.2 million U.S. dollars. Later, when the first contract for bitcoin Cboe has expired, the Crypto Facilities turnover almost doubled to 24.6 million.
However, no one but their own investor pool company did not even know about the sale of these futures, the more sales. Now the situation is changing, as the company prepares for another profitable month, and other exchanges are also eyeing the futures.
“Liquidity has increased significantly,” — said Shepler. “Our turnover grew throughout the month of February, and we think we set a new record in March.”
Forecast Sheflera based on statistics in turnover growth of futures on XRP and the value of the token. For example, in April of 2017 the turnover of contracts increased to 3.08 million dollars, with subsequent growth in may to 12.1 million. During the same period, the Ripple rate increased from 0.03 to 0.34 dollar. The situation was repeated in January, when the price of XRP has jumped to 3.53 dollars, while the turnover in futures has increased to 24.6 million.
There is reason to believe that more companies will start trading XRP-futures. CME Group became the first partner of Crypto Facilities, which has helped CME to start trading futures bitcoin. Although a company representative declined to comment on the possible opening of futures trading in XRP, CME participated in the investment B-series Ripple in 2016. Shortly thereafter, the former head of Department of precious metals and options on the CME metal led the markets XRP in Ripple, which potentially allowed a startup from San Francisco is better to learn the “internal kitchen” CME Group.
In addition, in response to the request Coindesk, a spokesman Cboe repeated(a) the application exchange CEO that the company can extend the list of proposals of the futures of cryptocurrency.
Finally, Paul Chow (Paul Chou), CEO and co-founder of LedgerX (provider bitcoin derivatives under control of CFTC) confirmed that his company is considering the opening of trading futures contracts on XRP. However, Chou hinted that some factors can slow decision-making.
For example, he said that the inclusion of futures on XRP in the offer sheet of the exchange will depend on the “concentration of tokens”. LedgerX is not the only company experiencing concerns about Ripple and its control over its own asset. According to media reports, employees of Ripple have much XRP.
Essentially, in response to customer requirements, which, according to Chou “is really interested in the Ripple”, the exchange formed a group to study the issue. In particular, it aims to find out whether owners of large number of XRP to manipulate prices on the market, especially if hypothetical futures will be settled in the form of cash payments.
In conclusion, Chow said:
“Physical settlement helps to avoid such problems, because man is not bound to some abstract value on which [artificially] to influence. You either want to buy cryptocurrency, or not.”