Traders Can Now Bet On Libra Failure in New Crypto Futures Offering
The likelihood of a Facebook crypto currency actually launching next year is so questionable that a trading firm is now offering bets on whether the social media giant can meet its deadlines.
Facebook Crypto Failure?
According to a Bloomberg report crypto derivatives exchange CoinFLEX is launching physically settled futures contracts for Libra, or whether it will actually be launched before the end of 2020. Based on their bets, traders will actually receive Libra tokens if it launches before the end of next year, or nothing if it doesn’t.
CoinFLEX’s Hong Kong based chief executive officer, Mark Lamb, stated;
“Facebook has the ability to rival the entire global 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.”
He added that the initial price of initial futures opening (IFO) will be set at 30 cents, stating that it equates to a roughly 30% chance that Libra will be operational by the December 30 date. Investors can also bet against Libra launching in 2020 and gains will be capped at $1.10 per token to account for changes in the value of the currencies backing the stablecoin added Lamb.
Clearly the odds are not in Facebook’s favour and the pressure against Zuckerberg and his dwindling consortium of tech and finance conglomerates is mounting. As reported by EWN over the weekend one of the Libra Association’s founding partners, PayPal, has already jumped ship.
Since the announcement earlier this year Libra has faced an onslaught of criticism, most of which has been justified considering the company’s past performance with data security and personal privacy.
US regulators have been joined by bankers and politicians across the pond in the EU calling for a ban on the currency before it has even been launched. Zuckerberg admitted that earlier launch dates may have been optimistic, stating that ‘obviously we want to move forward at some point soon’ before adding ‘right now I’m really focused on making sure that we do this well.’
Last month chief operating officer of the Libra Association, Bertrand Perez, stated;
“We cannot say that we won’t launch in 2020, or that we are certain to launch on a particular date in 2020,”
So it seems that the futures appear to be a good bet considering the increasing number of nations that want to block Libra and the fact that consortium partners are already getting cold feet.