Xena Launches Leveraged Contract for the Proposed Telegram Token
According to a recent report, the long-awaited Telegram token (gram) has started trading as a perpetual contract on London-based Xena Exchange. The exchange has launched a derivative contract for gram. An interested trader can do so with a leverage of up to 100x. The report made it clear that the newly listed perpetual contracts are publicly tradable and its sole purpose is to provide the gram token with liquidity before it hits the market later this year.
Xena’s Derivatives Now Public
Initially, Xena’s derivatives were only available for a small group of users, however, now the derivatives are available publicly.
In a recent statement, Xena chief executive officer Anton Kravchenko explained that the newly developed derivatives market is focused on institutional investors.
He states that: “This is a significant step for the entire crypto market, considering the importance of the gram token and its potential value as an asset for derivative contracts trading,” “This is the first time on the cryptocurrency market where contracts have been used not only to speculate on the rate changes but also to hedge the risks.” Kravchenko continued.
No Expiry Date for Perpetual
Compared to futures, perpetual do not have an expiry date. This translate into them been viewed as a better hedge against price drops. However, both contracts represent an agreement to purchase an asset, in this case, the gram token, at a pre-determined price.
In 2018, Telegram initiated one of the most successful initial coin offerings of the year. Through its ICO, the chat app giant raised $1.7 billion from private investors. The firm planned to have a public sales right after this, but unfortunately, the public sale was later suspended.
Now Xena is billing its gram perpetual as an opportunity for “those who passed up the chance to invest [to be] able to earn dividends on the potential rate hikes” through trading on the exchange. Also, “current gram holders will be able to hedge their investments against possible exchange-rate drops,”