Tezos (XTZ) and Stellar (XLM) Added To Bitfinex’s Margin Trading Options
Crypto exchanges continually add new coins to their offerings as more cryptocurrencies emerge and crypto traders demand more diverse trading options. The inclusion of new digital assets on exchanges is a sign that crypto trading and the crypto industry as a whole are growing.
One of the leading cryptocurrency exchanges in the world, Bitfinex, has announced that they have added Stellar and Tezos to their trading options. Investors on the exchange can now trade the two crypto assets against the USD and leading cryptocurrency, Bitcoin.
The exchange has listed the new trading options as XTZ/BTC and XTZ/ISD for Tezos and XLM/BTC and XLM/USD for Stellar. The exchange is offering the digital assets with a maximum leverage of 2x and an initial 50% equity.
With the addition of the two tokens to Bitfinex’s trading options, the exchange has also expanded the options which traders can use as collateral when they engage in margin trading. The cryptos which have been added to this list include Cosmos (ATOM), XTZ, Ampleforth (AMPL) and XLM.
Explaining their decision to add the new crypto assets to the list of margin tradable crypto, Bitfinex said that only margin-tradable crypto could be considered as collateral for margin trading.
The exchange has employed a new risk management system for crypto assets which allows them to assess the different risk levels for different tokens. The margins can be adjusted according to the risk level of a particular coin. They are looking to add more digital assets to the list in the future.
Battle with regulations and authorities
With regulatory authorities in the United States tightening their restrictions on cryptocurrencies and crypto exchanges, Bitfinex has not been spared from the battle with American authorities. The exchange is engaged in a legal battle which stemmed from issues surrounding the stability of the exchange’s stable-coin.
The crypto exchange is under investigation for suspicion of having duplicated statements pertaining to the backing of the digital asset. The attorney general in New York says that Bitfinex used about $700 million which they took from Tether’s reserves to cover the trading platform’s losses which amounted to $850 million.
Tether is the stable-coin issuer for the Bitfinex. The trading exchange has denied that they moved Tether funds to cover losses and they say that the funds used came from a deposit made by a Panamanian company named Crypto Capital.