Crypto Facilities Eyes Litecoin (LTC) Derivatives Launch
Since the first bitcoin futures contracts were launched in December 2017, when the price of bitcoin saw an all-time high of $20K, more firms have joined the bitcoin derivatives bandwagon. In the latest development, a UK-based regulated trading platform that created the first Ethereum futures contracts is set to launch its Litecoin derivatives.
Litecoin Futures Ready for Launch
According to a Finance Magnates report, the London-based firm is looking to make it possible for crypto traders to bet on both long and short selling of litecoin.
Crypto Facilities has announced the first-of-its-kind product for the sixth largest cryptocurrency will go live on June 22, 2018, at 4 pm BST.
Commenting on the milestone reached by the firm, CEO of Crypto Facilities, Timo Schlaefer, revealed that the company decided to list the LTC-USD futures due to the unending clients’ demand for litecoin instrument.
“We are excited to be launching futures on Litecoin, one of the most widely traded cryptocurrencies. There has been strong client demand for this product, and we believe our LTC-Dollar futures will increase price transparency, liquidity, and efficiency in the cryptocurrency markets. As digital assets continue to mature, we expect to see a greater number of institutional investors entering the marketplace.”
Litecoin to Moon Soon?
At press time the price of litecoin is at a meager $96, as the raging bearish market has not spared the altcoin. However, the founder of the Litecoin project, Charlie Lee is confident that this latest development will trigger a surge in the value of litecoin because more individuals, as well as institutional investors, will find it easier to trade the digital asset.
“This will add to the liquidity of Litecoin and make it easier for people to get in and out of Litecoin,” Lee declared.
Blazing the Trail
Crypto Facilities is hard at work, formulating crypto products to meet clients demand and the firm has succeeded in adding its name to the history books, twice in less than 60 days.
On May 14, 2018, BTCManager reported that Crypto Facilities had listed ether futures, making the firm the first regulated trading platform to achieve such feat.
“Ether is the second most liquid cryptocurrency after Bitcoin, trading in the billions of dollars daily, and we are excited to be launching ETH futures. The Ethereum network is the pre-eminent blockchain for smart contracts, and we believe this new trading instrument will attract more investors and bring greater liquidity to the marketplace,” said Schlaefer at the time.
Crypto Futures, a Blessing or a Curse?
Before the creation of the first bitcoin futures contracts by the two institutional heavyweights, CBOE and CME, cryptocurrency enthusiasts were optimistic that the move would further fuel an increase in the price of bitcoin. However, things haven’t turned out to be so.
On May 9, 2018, reports emerged the San Francisco Federal Reserve had released a statement attributing the bitcoin price slump to the emergence of the futures.
Notably, per a BTCManager report, on June 19, 2018, the United States Commodity Futures Trading Commission (CFTC) launched an investigation into the trading activities of several cryptocurrency exchanges, for allegedly manipulating the price of bitcoin via bitcoin futures contracts.
With the current situation of things, it appears the crypto futures markets have only succeeded in giving pessimists an upper hand in the cryptosphere, and it’s likely that the litecoin futures may do more harm than good to the price of the altcoin.