Crypto Derivative Platform FTX Introduces Alternative to Short Alts
CoinDesk reports that new crypto derivatives platform FTX has launched one of the most abstract and strangely-named futures index fund in the cryptocurrency market.
The index, dubbed Shitcoin Index Perpetual Futures or SHIT-PERP, is a 58 low market cap coins index. It is flanked by other low-cap indices ALT-PERP and MID-PERP and includes projects such as Grin, Nano, and Waves.
The derivative platform was opened in spring after an incubation program under Alameda Research began. The FTX derivatives platform operates an over the counter desk, indexes, and futures, as well as spot trading. The Antigua- and Barbuda-based platform has been adding margin and spot trading progressively.
According to FTX statements, the connection of FXT to Alameda Research offers it profound liquidity. Alameda Research was founded in 2017, and so far it manages more than $100 million in crypto assets that on a daily basis trade between $600 million and $1.5 billion. It operates one of the best performing accounts on BiotMEX, having helped onboard staff from Google (NASDAQ:GOOGL), Facebook (NASDAQ:FB), Optiver, Jane Street, and Susquehanna to FTX.
Despite having an odd name, the index stands by its product that was introduced sometime in June. While speaking to CoinDesk, Darren Wong, the Chief Marketing Officer of FTX, stated that the index enables investors and traders to have interactions with coins in various innovative ways.
Wong said that if a trader or investor is looking for exposure to a specific initial coin offering that is not in the general industry, they can short SHIT-PERP. This means by the trader shorting the alt market, they potentially hedge their bets and minimize their downside. Equally, if one is looking to short low market altcoins, then they can make use of SHIT-PERP because it is one way of shorting low-cap markets.
Featured image: DepositPhotos © lucadp