Facebook’s forthcoming digital currency, the Libra, is probably the most uncertain project in the cryptocurrency industry at the moment. Ever since the company announced its plans to issue the asset, there has been significantly heavy backlash both from the public and also from the U.S. Congress, so much that the earlier proposed date for early next year is quite shaky, if not completely impossible. Now, a crypto futures exchange firm seems to be taken advantage of all the uncertainty of the Libra and creating bets around it.
According to Bloomberg, CoinFLEX has begun making accessible derivatives offer which is entirely predicated on whether or not the Libra will actually launch before 2020 is over. The Libra situation which already seemed bleak from its inception seemed to get a bit bleaker when it was reported that three firms including MasterCard, Visa and PayPal were unhappy with the situation and considered leaving. A little bit later, it was revealed that PayPal was conspicuously absent from a Libra Association meeting and shortly after that, the payment giant announced its official departure from the project.
Mark Lamb, the chief executive officer at CoinFLEX, has, however, expressed his belief in the power of the Libra to fully disrupt the current financial status quo – if it eventually does launch, as things are currently not looking good. He noted:
“Facebook has the ability to rival the entire banking system from day one, but, because of that fact, when that first day will be is far from certain. The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.”
Lamb further added that because of Facebook’s reach especially with its billions of users in different parts of the world, the social media giant is in the best position to act as a “crypto on-ramp” for many of these “under-banked and under-served” people.
The CoinFLEX offer could be quite profitable for Libra bulls, who have faith in Facebook’s ability to work through regulators and still launch the token. The physically settled futures will only be delivered in Libra tokens, if the asset is issued on or before the end of December next year. This means that if the Libra is never issued and there are no Libra tokens to be delivered, investors. who have bought into the futures, will forfeit their investment.
CoinFLEX will kick off its offer, with an initial futures opening (IFO), which will begin on the 24th of October. Pricing will begin at $0.30, and according to Lamb, this will represent a 30% chance of a Libra issuance, before December 30, 2020. However, interested participants are also allowed to play against Libra’s launch.
This isn’t the first time CoinFLEX has floated futures for tokens which are yet to be issued. Previously, the company has offered IFOs for other projects including Polkadot, as well as Dfinity, the blockchain platform. The company now handles physically delivered Bitcoin futures worth about $500 million daily.