Crypto
Derivatives Exchange Adds Derivatives Contacts for U.S. Elections
FTX, a popular cryptocurrency
derivatives exchange, has added futures contracts for users to monetize their
prediction for the 2020 U.S. presidential election results. The firm first
added the TRUMP-2020 (TRUMP) contract, allowing
users to trade futures on President Trump’s reelection.
The exchange has since
announced it’s planning to release five additional 2020 presidential
election-based futures products, with an FTX representative telling
Cointelegraph it’s coming out with similar contracts for the top five
Democratic candidates.
This means the firm is
launching futures trading products for Joe Biden (BIDEN), Elizabeth Warren
(WARREN), Bernie Sanders (BERNIE), Pete Buttigieg (PETE), and for Mike
Bloomberg (BLOOMBERG).
The TRUMP contracts expire to
$1 in case Donald Trump gets reelected in the upcoming elections, and to $0
if he isn’t reelected. To get elected, a candidate will need 270 or more
electoral votes, and FTX will settle the contracts if all major media outlets
– including Fox, CNN, and the New York Times – have projected a specific
candidate will be the winner before all states release their official vote
counts.
The price of the contracts, per
the exchange, should be “equal to the probability that Trump wins
reelection,” and as such “if you think there's a 52% chance of Trump winning,
then TRUMP should trade at $0.52.” Notably, the contracts can’t be traded by
residents of the U.S., E.U., UK., Hong Kong, Singapore, and other prohibited
jurisdictions.
