Major crypto exchange giant Binance has announced that it is launching a new perpetual contract product through its futures trading platform – Binance Futures. The new contract, which pairs EOS with Tether’s USDT is the platform’s fifth one.
According to an official announcement on the Binance website, the new contract launched at 8:00 AM (UTC) on Wednesday, January 8. Also, Binance Futures is offering users up to 75x leverage.
Binance also put a pricing limit of ±1% on the mark price, to prevent market manipulation. This, however, only lasted for about 30 minutes from when the trades began.
A recent tweet from CEO Changpeng Zhao has revealed that Binance plans to create futures for the market’s top 20 cryptos. Zhao says that this will happen soon.
As earlier mentioned, the EOS/USDT is the fifth perpetual contract. The other ones currently available on Binance Futures include BTC/USDT, ETH/USDT, BCH/USDT and XRP/USDT.
Binance Futures Perpetual Contract Manipulation
Binance Futures only recently added the XRP crypto to its platform. Also paired with USDT, users have access to up to 75x leverage as well. Just a little over an hour after the launch, records showed movement worth over $400 million with a 14.4 million XRP 24-hour volume.
This turned out to be quite a big deal for XRP has it began to repair its bearish trends. Even though it would still take a minute for XRP to erase its losses over the last few months, the announcement significantly helped.
However, traders noticed that before the official announcement by Binance, there was considerable movement. This points, to a large extent, to insider trading. Reports suggest that hours before the main announcement was made, insiders knew and started moving their XRP accordingly. Insider trading, in regular financial markets, is illegal and can bag up to two decades in prison.
Binance is the first major crypto exchange to offer XRP futures contracts. XRP contracts however existed but on smaller platforms like BaseFEX and Delta.
In September 2019, Binance officially launched its Binance Futures platform. It started with an invitation-only membership on its testnets which ran for five days. Two testnets – Platform A and Platform B – were pitched against each other to see which would be preferred. After the “battle” was concluded, people began noticing some issues.
One of the major issues was that the Futures platform A was a little too similar to BitMEX’s offering. Also, there were similarities in the documentation for both platforms, which BitMEX eventually pointed out in a tweet.
— BitMEX (@BitMEXdotcom) September 4, 2019
Eventually, Platform A did much better with volumes of registrations and futures traded.
Binance ends its EOS/USDT announcement with a disclaimer about futures trading. It describes trading as a “highly risky endeavor” admitting that participants can earn or lose significantly.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.