Binance Futures To Roll Out Zcash (ZEC) Tether (USDt) Perpetual Contract Tomorrow
The futures platform of Binance is launching a maximum leverage 50x Zcash (ZEC)/ Tether (USDT) perpetual contract.
The announcement was made on February 4, revealing that the new ZEC/USDT contract is going to go live the next day, at 8:00 am. Binance is trying to prevent market manipulation by setting a ±1% mark price limit in the first 15 minutes since the trading starts.
The Difference Between Traditional and Perpetual Futures
As reports stated, as the Binance futures platform launched, their offering was at 125x, with the exchange emphasizing on how it was also giving passage to an insurance fund created to limit the auto-deleverage risk. The company’s CEO, Changpeng Zhao mentioned the futures platform has attracted many institutional investors and that professional traders had a demand of support for their fast trades.
Perpetual contracts don’t have a settlement or expiration date like traditional ones. Binance explains that, according to a traditional contract settlement time, there can be price differences amidst spot and futures markets. It also says that:
“The perpetual contract is an attempt to take advantage of a futures contract […] while mimicking the behavior of the spot market in order to reduce the price gap between the futures price and the mark price. This is a marked improvement compared to the traditional futures contract, which can have prolonged or even permanent differences versus the spot price.”
The Zcash Community Has Agreed to Continue Funding ZEC
The Binance announcement comes a few days after the Zcash community has voted for the development of ZEC to continue with funding. Electric Coin Company (ECC) and the Zcash Foundation are to be in charge of continuing to develop ZEC. When compared with initial coin offerings, outside grants obtained from third parties and treasuries, the innovations in ZEC depend on how the coin performs.
Binance Continues to Expand
Binance’s futures platform is not the only one that Binance is trying to expand globally, as the company is currently diversifying its list of crypto investment options. Besides, it will soon introduce staking rewards for the US-based marketplace starting this month, not to mention it has launched a dedicated staking platform back in September 2019.