Facebook’s Libra Delays Become Derivatives Market

October 9, 2019 / by Crypto.IQ

Facebook, the leading social platform, entered the crypto industry by announcing the launch of its native cryptocoin Libra amidst a lot of controversies. There were plenty of regulatory issues which caused a delay in its launch. In addition, even though the crypto venture of Facebook was expected to have the backing of major companies like Mastercard, Visa, Spotify, PayPal, and more, a few of them are already giving it a second thought. In fact, PayPal recently announced that they’re withdrawing from this project.

However, the crypto-futures exchange CoinFLEX has announced that they’ll be launching physically-settled futures contracts to extend support for Facebook’s crypto project. Derivatives will be offered by the exchange which pay out depending on when the cryptocurrency will get operational.

The crypto exchange plans on holding the Initial Futures Opening on October 24th, 2019. Their CEO Mark Lamb is, however, still cautious. Elaborating on current Libra conditions, he said, “The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.”

It is expected that Libra will be live by December 30th, 2020 while Libra Futures’ initial price would be 30 cents. Further, there’s only 30% possibility of Libra going live by the expected launch date. If the cryptocurrency does not go live till then, the investors will end up losing whatever investments they have in Libra. However, if this platform launches successfully, and a specific percentage is predicted by an investor, they’d get a Libra token after their contract expires.

Lamb believes that Facebook can compete well against the banking system all over the world, while highlighting its ability to get to the areas which are “under-banked and under-served.”

“If Facebook can act as a crypto on-ramp in these parts of the world, it will change the environment globally for cryptocurrencies,” he said.