Xena Exchange, a cryptocurrency exchange organization based in London, has now announced plans to kick off its own derivative contract for Telegram’s GRAM token. The firm, who is directly affiliated with Telegram, has now announced that XGRAM will be available for public trading. GRAM is expected to be released sometime before March runs out and XGRAM is expected to deliver a considerable amount of liquid assets and make this available for GRAM before it is officially launched.
More Details On The Derivatives
On the 28th of February, these derivatives were launched but were only accessible by just a few people in a specifically designed beta-mode. However, from now on, they are available to everyone.
The CEO of Xena Exchange has said:
“This is a significant step for the entire crypto market, considering the importance of the GRAM token and its potential value as an asset for derivative contracts trading. This is the first time on the cryptocurrency market where contracts have been used not only to speculate on the rate changes but also to hedge the risks.”
Perpetual Contracts Explained
A perpetual contract is basically a stipulated arrangement between parties that allows specific assets to be bought at a pre-fixed price. Furthermore, they do not have an expiry date and are consequently a great idea for protection against price volatility.
There are many trading institutions who allow traders to buy at high leverage and this allows these traders to make more purchases than they can readily afford. BitMEX, for example, requires traders who buy perpetual to pay a certain amount of interest, thrice a day.
Perpetual purchased from Xena are not controlled by the Financial Conduct Authority (FCA) in the UK because they are in crypto.
Telegram And Its Telegram Open Network (TON)
The TON is a part of the Telegram platform that allows for payments and a GRAM token is a unit of value for these payments. This idea is similar to the WeChat Pay already available in China. Currently, Telegram has about 200,000 active monthly users and hopes to use this to leverage for participation on its TON.
It is important to note that Telegram decided to suspend its much-awaited ICO last year after it was able to raise $1.7BN from about 200 investors.