Are you betting that Facebook’s stablecoin project Libra will be delayed? We have good news for you. Now, you can literally bet on this matter. Coinflex, a crypto derivatives exchange, has recently launched a new product: physically-delivered futures on whether Facebook will succeed to launch the Libra or not.
According to Coinflex, each contract will cost 30 cents to reflect the expected likelihood that the product will actually be launched by Facebook: 30%. The CEO of the company, Mark Lamb, was interviewed by Bloomberg and affirmed that extensive consultation with investors was done before the product was properly launched.
Lamb affirmed that the product launched by Facebook would be so powerful that regulators would not simply accept it without a brutal backlash. This greatly diminishes the chances that the asset will be launched without any kind of delay.
Libra has been giving several mixed signals lately. For instance, Paypal, one of the largest supporters of the Libra Association, was reported to give up on being a part of the company. The head of Calibra, David Marcus, affirmed recently that the goal is still to launch in 2020, but this seems increasingly unlikely.
How Will It Work?
The product will be launched via an Initial Futures Opening (IFO) a few weeks from now and then traders can finally start their bets.
Basically, traders can trade for or against the launch in 2020. If they trade believing that it will happen, they will pay 70% of one Libra token. If they are right, they receive the whole token. If they are wrong, they won’t receive anything. If they bet against the launch in 2020, they will receive the money if the asset is not launched.