EOS and Tezos Futures Contracts Now Live

Behold the clash of the Titans! We believe that the EOS and Tezos token sales will be the largest of 2017.

EOS Futures

BitMEX is proud to announce the launch of EOS Futures contracts, expiry 28 July 12:00 UTC with symbol EOSN17. Each contract is worth 1 EOS and the contract offers 2x leverage.

Since the EOS platform is still under development, the following rules will apply:

  • If no EOS auction is completed before the expiry date, EOSN17 will settle at 0.
  • EOSN17 will have 25% Up and Down Limit against the previous session close price to prevent price manipulation. Each session is 2 hours long, and session closes occur every even numbered hour.
  • Settlement will occur either at the most recent EOS auction price (if EOS/XBT trading has not begun) or at the .EOSXBT30M Index Price if EOS/XBT has begun trading prior to 27 July 12:00 UTC.

Further details about this contract can be read in the EOS Series Guide.

Tezos Futures

BitMEX is proud to announce the launch of Tezos Futures contracts, expiry 29 December 12:00 UTC with symbol XTZZ17. Each contract is worth 1 XTZ and the contract offers 2x leverage.

Since the Tezos platform is still under development, the following rules will apply:

  • If the Tezos crowdsale is not completed before the expiry date, XTZZ17 will settle at 0.
  • XTZZ17 will have 25% Up and Down Limit against the previous session close price to prevent price manipulation. Each session is 2 hours long, and session closes occur every even numbered hour.
  • Settlement will occur either at the ICO price (if XTZ/XBT trading has not begun) or at the .XTZXBT30M Index Price if XTZ/XBT has begun trading prior to 28 December 12:00 UTC.

Further details about this contract can be read in the XTZ Series Guide.

Bitcoin Basis and Arbitrage Trading 101

BitMEX CEO, Arthur Hayes, will lead an interactive seminar geared towards traders who would like to take advantage of very profitable arbitrage opportunities trading Bitcoin derivatives. He will discuss in depth the following arbitrage strategies:

  • Cash and Carry
  • Stair Step Cash and Carry
  • Funding
  • Swaps vs. Futures

Date: 29 June 2017

Time: 7pm to 9pm

Location: The Hive, 23 Luard Rd, 21/F The Phoenix, Wanchai, Hong Kong

Cost: Free

Given the recent surge in interest, we expect this event to be standing room only. Please RSVP on Eventbrite to secure your spot.

If you are unable to attend, a video recording will be available shortly after the event on the BitMEX Youtube Channel.

Additional Withdrawal Time at 10:00 UTC

We have received several support tickets asking about a special early withdrawal period, so that users may claim entry in the Byteball Fair Initial Distribution, which takes place at 13:10 UTC.

To support this, we will be initiating early withdrawals at 10:00 UTC tomorrow. No opt-in is necessary; all withdrawals will be processed if confirmed before that time. The usual time at 13:00 UTC will be honored as well. If you wish to participate in this distribution, we recommend hitting the 10:00 UTC cutoff so you have sufficient time for the transaction to confirm.

Status Futures Now Live

BitMEX is proud to announce the launch of Status Futures contracts, expiry 28 July 12:00 UTC with symbol SNTN17. Each contract is worth 1 SNT and the contract offers 2x leverage.

Since the Status platform is still under development, the following rules will apply:

  • SNTN17 will have 25% Up and Down Limit against the previous session close price to prevent price manipulation. Each session is 2 hours long, and session closes occur every even numbered hour.
  • Settlement will occur either at the ICO price (if SNT/XBT trading has not begun) or at the .SNTXBT30M Index Price if SNT/XBT has begun trading prior to 27 July 12:00 UTC.

Further details about this contract can be read in the SNT Series Guide.

QTUM Futures Now Live

BitMEX is proud to announce the launch of QTUM Futures contracts, expiry 29 September 12:00 UTC with symbol QTUMU17. Each contract is worth 1 QTUM and the contract offers 2x leverage.

Since the QTUM platform is still under development, the following rules will apply:

  • QTUMU17 will have 25% Up and Down Limit against the previous session close price to prevent price manipulation. Each session is 2 hours long, and session closes occur every even numbered hour.
  • Settlement will occur either at the ICO price (if QTUM/XBT trading has not begun) or at the .QTUMXBT30M Index Price if QTUM/XBT has begun trading prior to 28 September 12:00 UTC.

Further details about this contract can be read in the QTUM Series Guide.

Fade Into Darkness

Success,
It’s got enemies. Lots of enemies.
The success took a shot at you.
What you gonna do? Kill it?
You gonna become unsuccessful?

— American Gangster

The Bitcoin phenomenon created a whole new industry of cryptocurrencies and digital tokens. The top dog was and still is Bitcoin. But starting in 2017, challengers began seriously nipping at the heels of the champ.

According to Coinmarketcap, the entire digital currency market cap increased $22.89 billion YTD. Bitcoin’s share decreased from 87.60% to 60.06%; that represents $6.3 billion of funds diverted away from the King of Crypto.

Big Daddy Vitalik must be pleased with himself and his Ether child. Ether’s market cap rose by a factor of 10 in 2017. Its market share jumped from 4% to 18.23%. You can bet the devs will be having fun blowing money on the usual accoutrements of suddenly wealthy men at Devcon 3 in Cancun. PSA: please don’t wear socks and sandals unless you play in the NBA.

ICO mania began this year with Gnosis. The ICO made Gnosis the most valuable crowd-funded project ever at inception. Gnosis, like many other projects, is token built using the Ethereum protocol. Dapps (Decentralised Applications) must spend Ether in order to function. The more successful and useful you believe Dapps will become, the more Ether must be purchased and then spent. That is one major reason why Ether’s value is skyrocketing.

The vast majority of projects that launch ICO’s aren’t worth even one satoshi. The same can be said for the vast majority of startups, or even listed companies. Here’s looking at you Snap.

ICO’s will not go away. For the first time in financial history, founders can access capital from both large and small investors armed with nothing more than a slick website. No regulatory filings or egregious investment banking fees are required to raise capital. The capital of the 99% is there, and they are hungry to participate in the success of the next Google, Facebook, Tencent etc.

The same excitement Ether developers and users exude is not as palpable in the Bitcoin community. The community is no closer to an agreement on the proper way to scale Bitcoin. And banking issues continue to curtail the ability for new money to enter the ecosystem. The rising Bitcoin price papers over the major issues the ecosystem faces.

The Bitcoin to Ether comparison is not apples to oranges. One is digital gold, the other is a decentralised applications protocol.

They both can be wildly successful together. After the DAOsaster, Ether is being treated once more by some as digital money. The utility that Ether provides Dapps could give it the velocity to challenge Bitcoin’s status as the reserve currency of crypto.

That utility could be Ether’s achilles heel. Big Daddy Vitalik and the Ethereum Foundation care not if Ether is used as money good collateral, they care for it to power useful applications. Therefore, they will make decisions regarding the Ethereum protocol that could harm Ether’s moneyness in favour of its utility.

Most Bitcoiners desire Bitcoin to remain the best form of digital money. The varying viewpoints on how to achieve this lofty goal is one reason why development on the protocol has stalled. While this frustrates many, it also means that the community will not approve actions that would damage Bitcoin moneyness.

BitMEX is bullish on the industry as a whole. A rising market cap is good for everyone, even if the previous star shines less bright. In the end, BTFD!

Notice Regarding Gnosis Futures Contracts

The following will be effective 2 May 2017 12:00 UTC:

  • The .GNOXBT Index will use the most liquid GNO/XBT spot exchange’s price. At this moment, it appears that the most liquid exchange will be Poloniex.
  • GNOM17 will switch from Last Price to Fair Price Marking. Please read Fair Price Marking for more details on how this will affect trading.
  • The Limit Up / Down restrictions will be removed.

Gnosis: Shitcoin or Supernova?

Summer is near, that means it’s time to forget Bitcoin and embrace altcoins. The summer of 2016 began with the DAOsaster. The DAO became the largest crowd-sale in human history by raising $150 million in under one month. A few weeks later, in-built security holes allowed an individual to syphon off one third of the funds invested.

The Gnosis ICO will go down in the history books. Investors purchased $12.5 million Gnosis tokens (symbol: GNO) at a price of $29.85, giving GNO a market cap of $298.5 million. The cap of $12.5 million was reached in ten minutes. Investors subscribed for 4.19% of the total GNO float, the other 95.81% is held by the Gnosis development team. Holy pre-mine!

Pre-Mine Token Distribution:

  • 10% will be used to incentivise the Gnosis team over a period of several years. However, there is no explicit lock-up period.
  • The remaining 90% are held by Gnosis LTD. These coins will be used to incentivise others to build applications on top of the Gnosis platform. 99% of these funds are locked-up for 12 months.

Total Potential Float: 4.19% ICO + 9.58% Gnosis Team + 0.86% Gnosis LTD = 14.63%

Gnosis aims to create a truly decentralised prediction market. This is a lofty goal that many entrepreneurs and teams are working towards such as Augur, a competing Ethereum based prediction market project.

GNO tokens can be used to buy WIZ tokens (no this isn’t the 70’s Wizard of Oz remake featuring Michael Jackson). WIZ tokens are used to:

  • Pay trading fees
  • Create markets
  • Speculate on event outcomes
  • Subsidise markets and participation fees

The Gnosis team is very quick to point out the following:

 GNO tokens are functional utility tokens within the Gnosis platform. GNO tokens are not securities. GNO tokens are non-refundable. GNO tokens are not for speculative investment. No promises of future performance or value are or will be made with respect to GNO, including no promise of inherent value, no promise of continuing payments, and no guarantee that GNO will hold any particular value. GNO tokens are not participation in the Company and GNO tokens hold no rights in said company. GNO tokens are sold as a functional good and all proceeds received by Company may be spent freely by Company absent any conditions. GNO tokens are intended for experts in dealing with cryptographic tokens and blockchain-based software systems.

Instead of the traditional ICO model where a token price and supply are set by the team, GNO tokens were issued via a reverse Dutch auction.

Historically ICO’s are underpriced, and once they list in the secondary market, they moon. This price appreciation benefits token buyers and not the team. In the Dutch auction model, the Gnosis team is the biggest beneficiary because their pre-mined stash is instantly worth a lot more … on paper.

With a $300 million market cap GNO, in under ten minutes, has become the 8th most valuable digital currency. Many think this is scandalous. However, armed with nothing more than a slick website and a promise to deliver, Gnosis right now is proving to be an altcoin heavyweight.

Others believe in the future promise of a truly decentralised prediction market. The centralised online gambling and prediction market is massive. If Gnosis only partially delivers on their mission statement, it will still be bigly valuable.

Whether Gnosis is a shitcoin or supernova is a question that only the market can answer. Because BitMEX is committed to providing price discovery, we have launched the Gnosis / Bitcoin 30 June 2017 futures contract, GNOM17.

Traders can go long or short GNOM17 using only Bitcoin, with up to 2x leverage. GNOM17 begins trading before GNO tokens list on any secondary spot market. Trading on Kraken and or Poloniex will most likely begin in under a week.

GNOM17 Contract Details

Update on OKCoin Market Disruption Event – Removal Expedited

Traders,

Due to a quicker than expected price divergence on OKCoin International, we are moving the timetable forward for the removal of OKCoin International and the incorporation of GDAX into the index.

The new timetable is:

  • At 21:45 UTC, GDAX will be added to the index. At this time, the index will have three constituents.
  • At 22:00 UTC, OKCoin International will be removed.

For more information, please see our previous post on the removal of OKCoin International.

Market Disruption Event: OKCoin International

Yesterday, OKCoin International announced USD deposits have been blocked:

Starting from today (April 18th, 2017), OKCoin would temporarily suspend USD deposit because of the issues with intermediary banks. Please do not make further deposit as your wires may be rejected by intermediary banks. We are now actively looking for alternatives to resume deposit as soon as possible. Your current account balance remains unaffected. We are sorry for any inconvenience caused.

For this reason, we are weighting OKCoin Intl to 0 in the .BXBT Index, effective 20 April at 08:00 UTC. To re-distribute the index, GDAX will be reinstated as an equal member.

The new distribution will be equally weighted between GDAX and Bitstamp. For reference, this change is live on Testnet and can be used for intermediate pricing data.

Additionally, we will be announcing new price protection mechanisms for BitMEX indices to prevent further bad pricing issues.

Update: Due to rapid price divergence, the timetable has been moved forward to 19 Apr at 22:00 UTC.

New Protections for BitMEX Indices

Traders,

During the past weeks, many major exchanges have experienced issues with their banking relationships, and one sent incorrect prices. These prices caused liquidations on multiple platforms, including BitMEX. Affected traders were reimbursed from BitMEX funds.

We intend for the BitMEX index to accurately represent asset prices on functioning, liquid exchanges. Unfortunately, the landscape is shifting quickly. We expect more index changes to come as exchanges lose and regain their banking relationships.

In preparation for this, we are instituting the following protections to all BitMEX calculated indices:

  • For an index with 3 or more constituents, if any constituent’s price is X% away from the median price, that constituent will be removed until BitMEX manually reinstates it.
  • For an index with 2 constituents, if any constituent’s price is (X% / 2) away from the currently calculated index value, the index value published will be the last calculated index value.
  • For an index with only 1 constituent, if the constituent’s price is X% away from the last calculated index value, the index price will remain unchanged.

For Bitcoin / Fiat currency pair based contracts, the tolerance will be 25%. For Altcoin contracts, the tolerance will be 50%. The tolerance is subject to change with notice.

Additionally, the following protection has been in place since launch:

  • If any constituent exchange’s API feed is not responsive, the last valid price is used. If an exchange’s feed is stale for over 15 minutes, it is removed until the feed is operational again.

Example 1 (3-Exchange Index):

The index is equally weighted between exchanges A, B, and C. The initial price on exchanges A, B, and C is 100, and the tolerance is 25%. The median index price is 100. The price observed on exchange C changes to 50. Exchange C will be removed, the index price will remain at 100, and the index will now be equally weighted between exchanges A and B.

Example 2 (2-Exchange Index):

Tolerance: 25%

Time 0:

Exchange A Price: 100

Exchange B Price: 100

Published Index Price: 100

Time 1:

Exchange A Price: 100

Exchange B Price: 50

New Calculated Index Price: 75

Last Published Index Price: 100

New Published Index Price: 100

Because the difference between the two exchange prices and the New Calculated Index Price is greater than 12.5% (Tolerance / 2), the Last Published Index Price will be used.

Time 2:

Exchange A Price: 50

Exchange B Price: 50

New Calculated Index Price: 50

Last Published Index Price: 100

New Published Index Price: 50

Because the difference between the two exchange prices and the New Calculated Index Price is less than 12.5%, the New Calculated Index Price will be used.

Example 3 (1-Exchange Index):

The index is made up only of exchange A. The price on exchange A moved from 100 to 50. Given that the tolerance is 25%, and exchange A’s price moved 50% (50 vs. 100), the index value remains at 100. If exchange A’s price changes to 51, the index value will still remain at 100. If exchange A’s price were to change to 80, the index value would become 80.

Example 4 (Downtime):

The index is equally weighted between exchanges A, B, C, and D. The API feed for Exchange D has been down for 15 minutes. Exchange D will be removed, and the index will now be equally weighted between A, B, and C. 5 minutes later, D begins responding and is reinstated.

Market Disruption Event: Bitfinex

Just recently, Bitfinex announced that USD deposits will be rejected until further notice. In combination with their previous notice blocking USD withdrawals, this means that Bitfinex is no longer a viable USD/Bitcoin exchange, and we expect the pricing discrepancy between Bitfinex and other exchanges to increase as traders attempt to withdraw via cryptocurrencies.

For this reason, we are weighting Bitfinex to 0 in the .BXBT Index, effective at 16:00 UTC today (30 minutes from the time of this post). In combination with the prior temporary suspension of GDAX from the index due to pricing discrepancies, this means that for the time being, the old .XBT index and the new .BXBT index will print the same prices.