Ex OKEx COO To Launch Crypto Derivative Exchange ACDX By Mid-Year, Seeking $40M Raise
Andy Cheung who served as the chief operations officer (COO) at renowned crypto exchange firm OKEx, is aiming at raising $40 million to roll on his own crypto derivatives exchange, CoinDesk reports.
The outlet reports that Cheung is planning to raise the funds through selling tokens as well as equity investment mostly in the crypto funds. The proprietor is also targeting family offices in Asia and Europe and private equity companies to raise the required amount.
Cheung left his top position at one of the largest crypto exchange platforms in the world in December. He started his own consultancy firm dealing with matters blockchain in Hong Kong.
After careful study of the crypto market, Cheung noticed that demand for crypto-base derivatives is increasing rapidly and has now decided to start his own platform. He said that the new platform will be started before the end of the current quarter.
Cheung’s platform will target both retail and institutional clients. He stated that he wants to come up with a platform which allows retail clients to access its services. This will help in opening up the derivatives market which is largely a preserve of the institutional investors. The new crypto derivatives exchange is also set to serve high-end institutions as well as allow wealth managers to better manage their investments. He stated:
“One of our main goals for the exchange is to provide retail investors with … structured products that are more commonly used by accredited crypto investors and wealth managers,”
The exchange platform plans to roll out different investment instruments that comprise of futures, fixed coupon notes, options, warrant contracts as well as callable bear/bull contracts.
The new crypto derivatives platform aims at serving the Asian markets as the demand for services is rising at a higher rate.
Cheung also stated that the new platform has already acquired a backing of more than $4 million mostly from the co-founders. Currently, the startup is in talks with various potential investors and more investment is expected soon. At the moment the firm has about 25 employees who are busy developing the products.