The Xena exchange platform has announced it is ready to launch the ‘first-ever’ leveraged cryptocurrency-settled derivative contract for Telegram’s Gram token.
Telegram is an encrypted chat platform founded in 2013. Telegram’s side project – Telegram Open Network (TON) – as well as its native Gram token are expected to be integrated within the blockchain-based application.
The Xena exchange was founded by former employees of well-known investment banks and technology banks including JP Morgan, Deutsche Bank, Russian Stock Exchange, and Kaspersky Labs.
A recent press release claims the move is a significant step towards improving the liquidity of Gram. Telegram TON project investors will be able to trade the derivative contracts before the Gram tokens are issued.
The Telegram TON blockchain project raised $1.7 billion from private investors. It held its initial coin offering (ICO) in 2018.
Anton Kravchenko, CEO of the Xena exchange, commented: “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.”
The move will provide people with the opportunity to invest in crypto through contracts and aims to attract institutional investors.
Bitcoin to US dollar (USD) will be the first derivative contract to be launched.
The Xena exchange currently issues institutional-grade derivative contracts known as ‘Xena Listed Perpetuals’, which are designed to focus on crypto market specifics.
They allow for high leverage (up to 100x) while utilising built-in mechanics to protect traders against sudden price swings and unnecessary liquidations.
“In traditional markets, derivatives trading is 10 times higher than the volume of underlying assets. Derivatives, such as tradable indices and futures, are useful for hedging as well as for leveraging trading profits,” says Kravchenko.
“The indices simplify investments and reduce the risks for investors due to diversification. Thus, we really support the development of this side of the Xena exchange with Bitcoin and Gram contracts as the first step.”
Interested in reading more exchange-related news? Discover how the London Stock Exchange listed a blockchain exchange-traded fund (ETF).
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.