Digitex Bitcoin Futures Exchange Set to Launch April 30, Looks to Compete with Rival BitMEX
Decrypt Media released an interesting article recently concerning the Digitex launch, which according to CEO Adam Todd, will go live on April 30. This is one year after the ICO that raised $5.2 million took place. Digitex hopes to compete with BitMEX, a popular futures market that has a $3 billion trading volume on a daily basis.
The article explores whether Digitex will be able to compete with BitMex. According to the article, Todd is hopeful of his exchange’s success because it can offer investors 100x leverage. Todd shared with Decrypt,
“When we first launch, we’re going to stick with 10x leverage. We’ll see how it’s going, and gradually increase it from there. We’re going to get the leverage as high as it can—we’re going to try to get up to 100x leverage.”
Another quality to Digitex that may attract more individuals and that may allow it to better compete with BitMex is that it will have no trading fees. However, it should be noted that even with the absence of trading fees, the Digitex token’s cost is in the inflation and the requirement that it be used on the platform.
Token holders can vote on the level of inflation and determine how many new coins will be produced and provided to the team for their work on running the exchange. The more use of the token means that its value will increase and with a higher value, demand will presumably increase as well.
Todd shared with Decrypt that he believes token holders will do what is in the best interest of the collective and
“‘it’s going to devalue my tokens right now, but if it’s going to fund a highly liquid futures exchange for the next year, that’s going to offset that small inflation rate.’”
He also added that the system will be fairer than BitMEX, which is facing accusations of trading against customers and of wash trading. BitMEX denies these allegations.