Binance has published an announcement on September 2nd, disclosing the acquisition of the little-known crypto derivatives platform JEX. One of the world’s largest crypto exchanges and trading platforms is planning to step into the derivative market and JEX might open the doors of crypto futures and options markets for Binance.
Binance has also been working on the development of its native derivative platform. It will allow the clients to trade on the JEX platform as well as the one it develops to compare the various aspects of both of these trading platforms.
Binance is one of the most popular digital assets exchange and it offers a wide range of cryptocurrencies to trade. JEX, on the other hand, is an exchange based in Seychelles that offers derivative products including futures and options, and perpetual contracts. As a part of the acquisition, JEX will join the Binance ecosystem as both provide spot and derivatives trading services. The acquisition will also help Binance to consolidate its place in the crypto assets derivative market, providing Binance users with professional derivative services.
From the announcement:
“We welcome the JEX team and more partners to join the Binance ecosystem. We look forward to delivering more innovative derivative products in the future with Binance JEX.”
Offering Users Crypto Tokens for Marketing Tasks
According to Binance’s announcement, both the development team at JEX and the distribution of the JEX tokens will be managed by Binance. The crypto will thence attempt to improve the use cases of the JEX tokens. these crypto tokens are also planned to be distributed as bounty to participants for completing various marketing tasks; the rest of the tokens will be burned gradually and redeemed in various forms, including trading commission deductions.
Talking about the platforms developed by Binance and JEX, both of them will be going live within a couple of weeks. Participating traders will be able to compare the various aspects of the platforms and can vote for the best one to get a chance to win up to 10,000 Binance Coin (BNB) tokens. Once the Beta testing is done, Binance will announce the winner based on the traders’ reviews.
Binance’s spokesperson made the following statement:
“We think open competition is a great way to test out the products’ usability. Through the competition, we hope to fully review the two products in terms of market feedback, scalability and liquidation model design. It’ll help with the ultimate decision making.”
According to Binance spokesperson, the current crypto derivatives market has several common issues of high latency, overloads, and poor risk-control mechanisms. This acquisition might help Binance to address these common issues and deliver better spot and margin trading services.