Binance Set to Launch NEO/USDT Futures With Up to 50x Leverage
Major cryptocurrency alternate Binance introduced that it’s about to launch a brand new futures product monitoring crypto asset NEO.
Per the announcement printed on Feb. 16, the NEO/USDT futures might be launched on Feb. 17 and merchants might be in a position to choose leverage between 1x and 50x. The charges that the alternate imposes on trades of the contract in query are a 2% base preliminary margin charge, 1% base upkeep margin charge and a zero.5% liquidation price.
What is NEO?
The Binance data web page devoted to NEO explains that it’s an open supply platform pushed by its group that makes use of blockchain, good contracts and digital identities to digitize and automate asset administration. The web page additionally mentions that the blockchain first launched in 2016 and is anticipated to improve to the third model of its software program (Neo3) this 12 months.
A Binance spokesperson informed Cointelegraph that the agency determined to create a NEO-based futures contract after reviewing liquidity on its spot market. Furthermore, the spokesperson additionally talked about future development:
“We are looking to add 20 or 30 trading pairs on Binance Futures, and will consider the most liquid 20 to 30 pairs first.”
Meanwhile, NEO worth has misplaced 2.81% of its worth over the 24 hours to press time and is presently value $15.04, after beginning the day at $16.67.
NEO worth 7-day chart. Source: Coin360
Are futures the speculator’s dream?
Futures contracts typically characteristic significantly excessive leverage and permits hypothesis on issues that will in any other case be troublesome to commerce. One instance of how futures can allow such exercise is the contract launched earlier this month by cryptocurrency derivatives alternate FTX, which permits merchants to wager on President Donal Trump’s reelection in 2020.
Just a few days later, FTX additionally introduced plans to launch 5 further 2020 presidential election-based futures merchandise together with a Bernie Sanders (BERNIE) futures buying and selling product, in addition to futures on Joe Biden (BIDEN), Elizabeth Warren (WARREN), Pete Buttigieg (PETE) and Mike Bloomberg (BLOOMBERG).
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