BitMEX UPs and DOWNs Options Platform
BitMEX offers something a little different from the other cryptocurrencies, in that it is a derivative, but they have used their technology to launch an “optionality” product. The major milestone for the company is called “UPs and DOWNs.” This is not the first time that the company has released futures or swaps, but it is one step on the journey towards offering a complete line of derivative products.
Why UPs and DOWNs Options?
UPs and DOWNs is an abbreviation that describes the functions of the new platform. UPs are Upside Profit Contracts, while DOWNs are Downside Profit Contracts, which are necessary to adding new options to the crypto exchange. Right now, the most traded swap in the entire industry is the BitMEX XBTUSD Perpetual Swap, which is used billions of times a day with investors.
In fact, from March 2017 to March 2018, over $306.19 billion was traded using the swap. Many experts say that this is the best timing for swaps and futures, as the industry needs more linear products.
According to CEO and co-founder of BitMEX, Arthur Hays:
“Before non-linear products like options are viable, linear products must be sufficiently liquid. Given the liquidity profile of XBTUSD and the quarterly Bitcoin / USD futures contracts, we now believe there is sufficient liquidity in order to launch a successful options product.”
Critical Reception For BitMEX
Unfortunately, the recent performance of BitMEX has been criticized for their difficulties with overload, and some critics believe that products like UPs and DOWNs are to blame. However, to counteract these potential issues, BitMEX has vowed to launch and test other products within the next year to make their processes more seamless. In their efforts, this company continues to keep up with the growing demands of the crypto-industry, which continues to become more advanced and intricate as each day goes by.