CoinFLEX to Unveil Initial Futures Offerings (IFO) for Pre-Launched Token in Polkadot's DOT Coin

A new Initial Futures Offering (IFO) from CoinFLEX, a cryptocurrency futures and lending exchange, will be launched on Wednesday the 17th of July. CoinFLEX is backed by popular investor and Bitcoin bull, Roger Ver, as well as crypto investing firm, Polychain Capital. It has also been announced that the IFO would be Polkadot’s DOT.

Mark Lamb, CoinFLEX’s CEO has said that this might be previously uncharted territory for the exchange. According to him:

“This is the first time we’ve made a futures market for a coin that doesn’t actually exist yet. It’s a determiner of the price before the asset exists.”

CoinFLEX launched four futures contracts including Bitcoin (BTC), Tether (USDT), Bitcoin Cash (BCH) and Polkadot (DOT). The FLEX, CoinFLEX’s own exchange token, was then launched this month. The upcoming IFO is the first time the firm will be requiring prospective participants to purchase the FLEX. According to the plan, at least 300 people who hold FLEX tokens will have rights to a discounted DOT price at $75.

An unnamed source has expressed that since the asset itself has yet to launch, this move matches the general rates for DOT contracts over-the-counter. The source said that there’s a planned $1.2 billion valuation proposed by Gavin Wood, the creator of Polkadot and Ethereum co-founder. For this valuation to be actualized, the price of a token would still surpass $100 in the near future.

Before now, the Web3Foundation, the Switzerland-based firm building the project, was able to secure a $15 million investment from three Chinese firms for an undisclosed number of tokens. The specific firms are unknown and CEO Mark Lamb has also not revealed.

Giving more details, Lamb has explained the requirement of locking up FLEX and also the expiration of the IFO Contract. According to him:

“In order to buy at the presale, you need to lock up a thousand FLEX. We don’t know when they expire, because we don’t know when mainnet is going to launch.”

FLEX tokens can also be used to gain access to certain opportunities in the ecosystem as well as paying exchange fees, like the BNB token is setup to do. Lamb has also said that in the next few months, other futures including BNB and Tron would be available.

According to Emmanuel Alamu, the Head of Business Development at CoinFLEX, IFOs are great for the market as a way to measure in-market pressure. Alamu also said:

“IFOs are an innovative way for the market to develop price discovery and act as a barometer on the progress of these blockchains. We can handle dual margining and hence, enact rules that ensure both sides of an IFO trade will deliver their respective side of the digital asset.”

There are only a few futures contracts that relate to assets that haven’t been launched as the majority are for already traded assets. However, it would seem like there might be some interesting building for futures contracts on assets not yet launched.

Polkadot IOUs are now available for BitForex users for retail investors interested in DOT tokens.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Tolu
Tolu
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify bitcoin stories to the bare basics so that anyone anywhere can understand without too much background knowledge and add in social research and feedback insights. When he's not neck-deep in crypto news, Tolu enjoys music, loves signing and is an avid movie lover.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,486FansLike
2,795FollowersFollow
4,269FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitcoin Giving Strong Bullish Signals, Markets to Roar Higher into Next Year

Today, Bitcoin is on the move, aiming for $11,000, currently trading around $10,915. Adding to this bullishness is all the dry powder. $20 billion worth...

ETH Locked on Aave & Uniswap Records a Sharp Rise

Decentralized Finance (DeFi) is back to recovering, currently at over $11 billion, reaching an all-time high of nearly $12 billion from last week, as...

Bahamas Central Bank Confirms CBDC ‘Sand Dollar’ to Launch In Less Than 30 Days

The Bahamas Central Bank has confirmed that its pipeline CBDC ‘Sand dollar’ will roll out next month as anticipated. This will mark the first...

KuCoin Hack Update: 11 Crypto Projects Freeze the Stolen Tokens

Over the weekend, KuCoin lost about $275 million in BTC, XRP, BSV, XLM, TRX, stablecoins, ETH, and other ERC-20 tokens in a security breach....

Bitcoin Re-Entering the ‘Intense Historical Trading' Area Following a Strong Uptrend

Bitcoin is back at near $11,000. The leading digital currency has been making its way upwards since the mid of last week. Today, to mark...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today