The Libra cryptocurrency proposed by Facebook Inc. has faced such an overwhelming disdain since it was announced in June this year that the CoinFLEX exchange has facilitated bets on whether the social media company will get close to meeting its established launch date.
CoinFLEX, a cryptocurrency futures exchange that was launched earlier this year, is offering derivatives that will pay based on the probability that Libra is operating by the end of 2020. Facebook has said it plans to launch Libra by the middle of next year, but that will not do such a thing until regulators are satisfied, which is a substantial qualifier given the misgivings of the various legislators, from the finance minister of France to the director of the Federal Reserve of the United States.
How do CoinFLEX Futures on Facebook Pound work?
CoinFLEX is offering physical delivery futures that will deliver Libra tokens if the so-called stablecoin of Facebook is launched before December 30, 2020, which is the settlement date of the contracts. If by that time Libra is not operating, investors will receive nothing, and will have lost their initial investment.
The exchange house, whose headquarters are in the poorly regulated Republic of Sychelles, plans to make what they call an initial futures offer (IFO) on October 24. The initial price of Libra futures will be set at 30 cents, which is equivalent to an approximate 30% chance that Libra is operating by December next year, Lamb said.
An investor who attributes an 80% probability that Libra is operating before the contracts expire, will pay the equivalent of 80% of a Pound and, if it is correct, will receive a Libra token once the contract expires, Having acquired it at a discount. If the investor wrong, he will not receive anything and will not receive his money back.
Investors can also bet against the launch of Libra in 2020. For both long and short trade, the winnings will be limited to USD 1 for each Pound, to take into account changes in the value of currencies that support stablecoin said Lamb.