Nowadays, two types of trading are on cryptocurrency market: spot trading and derivative trading.Spot trading involves the purchase or sale of a digital asset with instant delivery; this means that the asset seller must possess the asset at the time of the sale.Derivative trading, on the other hand, is the purchase or sale of contracts that derive value from an underlying asset.
In the trade of traditional assets, such as stocks, bonds or commodities, the volume of derivative trading greatly exceeds the volume of spot trading. However, the distribution of trading volume and notional traded is starkly different when it comes to cryptocurrencies as spot trading.
(Source:https://duo.network)
Why is Derivative Trading Lagging in the Crypto Space?
The cryptocurrency space is largely unregulated, and that includes the exchanges that operate within it. Thus, derivative trading, which involves complex trading engines, is plagued with problems. Leading cryptocurrency derivative exchanges like BitMEX and Okex have been regularly accused of taking advantage of the lack of transparency and regulatory eyes in this space; the accusations stem from thetraders’ claim of deep losses caused by incidents that should not have occurred at first place.
As spot trading involves the buy and sale of the actual asset, there’s limited room for market operators to meddle. However, the derivative trading involves the buy and sale of contracts and this gives incredible control to the market operator. Blockchain technology, which is repeatedly touted as the tool to counter corruption and opacity, is ironically the key sector in which a lack of transparency limits the growth of its various business opportunities, including derivative trading. The cause of this is that derivative exchanges exist exclusively as centralized markets; there’s a void that needs to be filled by a decentralized derivative market for cryptocurrency spaces. Given that derivative markets have historically outpaced spot markets, a decentralized derivative market is an excellent yet untapped business opportunity within the cryptocurrency space.
DUO Network aims to Deliver a Decentralized Derivative Market
DUO Network, a trustless derivatives marketplace founded by finance veterans from top-tier institutions such as Citi, Credit Suisse and VISA, with solid experience in trading, quantitative analysis and engineering, is leading the development of decentralized derivative market.
DUO Network is a decentralized platform enabling issuance, trading, and settlement of tokenized digital derivatives. The platform aims to reduce risks and barriers in traditional derivative transactions, through collateralized smart contracts and distributed price feeds, thereby creating a transparent and autonomous derivative marketplace. This development is an advancement over not only the existing cryptocurrency derivative exchanges, but also traditional derivative markets for stocks, bonds, and commodities. Through the use of smart contracts, the issuance of the derivatives innately integrates the transparency needed to make this market more appealing with the wider Crypto community. The integration of the code is king mantra in derivative trading will ensure:
-Any attempts of wash trading are visible to the public
-Sudden rule changes are not applicable to rules placed for the previous smart contracts
-Any market manipulation attempt can be easily audited
Presently, BitMEX is the undisputed leader of BTC volume. The platform’s volume well exceeds any competitor, even in the spot trading market. This shows that there’s a strong demand for a platform that can deliver a solid derivative market. BitMEX has managed to acquire such a high volume despite that users regularly disappointed with its matching engine; the exchange’s matching order errors are so common that they have achieved meme-status.
Upcoming Pre-sale on BitMax.io
DUO Network has partnered with BitMax.io, the world’s leading digital asset trading platform, and will launch its upcoming pre-sale to BitMax.io users. As the organizer, DUO Network takes legal responsibility for the token pre-sale. And BitMax.io will provide technology and execution support for this pre-sale.
(BitMax.io official webpage: https://bitmaxhelp.zendesk.com/hc/en-us/articles/360022073753-Announcement-of-DUO-Network-DUO-Pre-sale)
Details are as follows:
Pre-sale Period: 8:00 a.m. EDT, Apr 27th, 2019 - 9:00 a.m. EDT, Apr 27th, 2019
BitMax.io will also list DUO Network (DUO) under the trading pairs of DUO/USDT, DUO/BTC.
Deposits and trading to start at 9:00 a.m. EDT on Apr 28th 2019.
Withdrawals to start at 9:00 a.m. EDT on Apr 29th 2019.
DUO tokens have a total supply of one hundred million (100,000,000) tokens. Ten million (10,000,000) DUO tokens will be sold in the pre-sale; the price will be 0.15 USDT per DUO token. Pre-sale will have no lockup. The pre-sale volume will make up the majority of the initial circulating supply of 10,360,000 tokens; this prices the net circulating supply, at the time of BitMax listing, at 1,554,000 USDT.
To be qualified for the pre-sale, participants must hold BTMX Position ≥10000 in Cash account and complete KYC V2 on BitMax.io. Individual cap for each qualified participant is set at 2,500 DUO tokens, which is equivalent to a valuation of 375 USDT. Pre-sale participants will receive their unlocked tokens within 24 hours after the completion of the pre-sale.
At the completion of the token sale, DUO Network will be listed on BitMax.io under the trading pairs of DUO/USDT, DUO/BTC.
BitMax.io is committed to listing only industry top tier projects.Since last December, BitMax.io has already successfully executed six primary listing with star blockchain projects, such as Ankr, DOS, Lambda, LTO Network, COVA and CVNT. BitMax.io is also regarded by the industry for its client-centric strategy. Since official launch in last August, BitMax.io has expanded its global client base to over 150,000 registered users and 53,000 active community members. Its newly upgraded trading interfaces have further improved user experience.
The strategic partnership with DUO Network will further support BitMax.io’s vision in financial market innovation. And with community support from BitMax.io, DUO Network will boost the usability of blockchain by building a decentralized platform that enables issuance, trading, and settlement of tokenized digital derivatives. This partnership between DUO Network and BitMax.io will provide top-tier services, beyond liquidity, to blockchain believers and digital asset traders.