Crypto Derivatives Exchange FTX Releases “Shitcoin Futures Index” For Traders To Short Altcoins
FTX, a crypto derivatives platform, has started to offer a very curious new product recently. The company has created a speculative index fund called SHIT-PERP: Shitcoin Index Perpetual Futures. That’s right, people, futures for the so-called shitcoins.
The idea is to index a total of 58 altcoins which are pretty badly placed in the market. It has a lot of projects which are not very well-known and some projects which are more famous such as Grin, Waves and Nano. Now, SHIT-PERP will join MID-PERP and ALT-PERP, two other low-cap indexes which are present in the site.
FTX is actually a somewhat new exchange. It was originally incubated during the Alameda Research program and it launched this year. The platform provides an over the counter (OTC) desk, indexes, futures and spot trading. Now, the platform is also offering options for traders who are interested in margin trading and spot trading as well.
According to the company, its connection with Alameda Research also helps it to have more liquidity than other companies in the market. Alameda, which was created in 2017, currently managed over $100 million USD worth of assets.
The team also affirmed that it was FTX that helped the company to get some important employees on board, such as people who worked on Google, Facebook, Jane Street, Susquehanna and Optiver.
Interacting With The Market In New Ways
Darren Wong, the CMO of FTX, was recently interviewed by Coindesk. He affirmed that the index of bad coins is important because it can give people new ways to interact with the market.
According to Wong, there are at least three examples of how someone could use the shitcoin index in order to make profits. For instance, the person could get exposure to an Initial Coin Offering (ICO) without needing to be exposed to the general industry. This way, the person could short the market and hedge bets while limiting the downsides.
Another way is to short the altcoin market in general since there are not a lot of ways to do that. Finally, the third way is to buy from the three indexes in case you think that BTC dominance is too high and will go down soon, this way, you profit when dominance goes down.