Binance Acquires Crypto Derivatives Platform JEX
Even a couple of years ago, the crypto derivatives market was regarded as some form of novelty by most people across the world, except those who were actually involved in it. However, things have changed dramatically since that time as Bitcoin went on its remarkable run back in 2017 and many other developments made it abundantly clear that the crypto space was here to stay.
In a new development, crypto exchange giant Binance has announced that it has decided to acquire crypto derivatives platform JEX. Since 2017, several cryptocurrency exchanges have sprung up, and a range of new investments instruments have also been introduced so that investors have lots of options.
Crypto derivatives are gaining in popularity in the crypto space, and now there are companies that offer it. JEX offers crypto derivates like perpetual contracts, options, and futures, and this signifies a major coup for Binance. In order to integrate JEX with the wider Binance ecosystem, it is going to be rebranded as JEX Binance and customers will soon be allowed to trade on the platform. According to Binance’s press release, the customer will get to trade crypto derivatives on JEX within a few weeks.
That being said, it is also important to keep in mind that Binance has been working on its own products as well, and hence, this acquisition could be a way of speeding up the entire process. The company will eventually choose between the JEX platform and its own platform in the end. A spokesperson for Binance spoke about the way in which the company is going to go about choosing the platform.
He said, “We think open competition is a great way to test out the products’ usability. Through the competition, we hope to fully review the two products in terms of market feedback, scalability, and liquidation model design.” The entire JEX team working in crypto derivatives will be absorbed by Binance, and the JEX token is also going to come into its control.
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