Dubbed an Initial Futures Offering (IFO), the exchange launched similar derivatives products for both the blockchain interoperability project Polkadot and cloud computing network Dfinity before their mainnets were live, Bloomberg reports on Monday.
Crypto futures exchange CoinFLEX is issuing derivatives linked to the launch of the Facebook-led Libra cryptocurrency project.
The Libra IFO, a physically settled product, allows investors to bet if Libra will launch before the settlement date of Dec. 30, 2020. The futures product will be available Oct. 24 and will pay out in Libra tokens.
Libra’s launch date – originally slated for early 2020 and now looking more like the end of the year, if not much later – has been pushed back following regulatory backlash and partner exits, such as PayPal’s departure this past week. Some nation’s lawmakers have even called for the project to be halted.
“Facebook has the ability to rival the entire global banking system from day one, but, because of that fact, when that first day will be is far from certain”, CoinFLEX CEO Mark Lamb told Bloomberg. “The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.”
Prices for the futures are set at $0.30, which equates to a 30 percent likelihood of Libra launching by the settlement date, Lamb explained. If Libra launches, future holders get a nice bonus for their faith in the project.
US Senators Warn Three Facebook’s Libra Backers of Membership Risks
Three backers thought to be reconsidering their involvement in Facebook’s digital currency Libra have received warnings from the United States’ politicians over participating.
Senate Letter: Facebook’s problems are your problems
According to Bloomberg’s article published on Oct. 9, a letter to Visa, Mastercard and Stripe was sent by two U.S. senators. In it, they are reportedly pressuring the three payment giants to look closer at the regulatory implications of Libra.
The report comes a week after the rumors started to spread about the companies’ cold feet over Facebook’s digital currency. PayPal, formerly a member of Libra, then officially left, saying that it fears the kind of repercussions the letter appears to embody. The senators’ latest message reads:
“Facebook is currently struggling to tackle massive issues, such as privacy violations, disinformation, election interference, discrimination, and fraud, and it has not demonstrated an ability to bring those failures under control. … You should be concerned that any weaknesses in Facebook’s risk management systems will become weaknesses in your systems that you may not be able to effectively mitigate.”
A widely-forecast backlash
One of the letter’s authors, Sherrod Brown, is conspicuous for being the senior Democrat on the Senate Banking Committee. As Cointelegraph reported, the Committee has taken a highly skeptical view of Libra, conducting multiple hearings in which it grilled executives over their plans.
Brown now seems to suggest that a general distrust of Facebook could translate into distrust of its financial activities. His words echo the predictions of teething problems made by Ripple CEO Brad Garlinghouse earlier.
“Facebook has been in the crosshairs of a bunch of governments around the world”, he summarized, adding that he doubts Libra would appear before 2023.