BitMEX Copycats Continue To Dominate Crypto Settled Derivatives Launches

Crypto copycat products have some defining characteristics
Crypto derivatives are settled in bitcoin and are 'perpetual'
Crypto derivative copycats offer out sized leverage to traders
Crytpo and Bitcoin Market Cap Story of Day

Crytpo and Bitcoin Market Cap Story of Day





BitMEX Copycats Continue To Dominate Crypto-Settled Derivatives Launches - A New Build Opened This Week In Singapore.

The highly successful BitMEX, which hosts the world's most popular BTC product in their XBT Perpetual Swap, has attracted copiers in the form of both new entrants and incumbents.  The follower products have some defining

characteristics: they are settled in bitcoin, they are 'perpetual' and they offer outsized leverage to participants.  A new entrant, Phemex, launched such a product offering (3 perpetual swaps and 100x leverage) just this week. Incumbent venues such as Binance and Bitfinex have launched similar platforms within the last 6-months. 

Crypto Takeaway: As far as copycats go, Singapore-based Phemex is one of the most egregious representations. Not only does contract price clearly mirror/follow that of BitMEX products but the launch looked entirely rushed with spelling and copy mistakes frequent on the platform.

Incumbents, however, have been equally bold with BitMEX pointing out that the initial Binance derivatives had copied their reference documents word for word. We find the activities of copying existing products to the detriment of innovating new ones somewhat disappointing.

With a new, fragmented and volatile asset class like crypto, the opportunity to create innovative products to manage such risks is great. Ultimately, we expect these new products will begin to be built especially now that almost every major trading venue has its version of a BitMEX perpetual swap. 



BTC Derivatives - showing the fragmentation of the current crypto-settled derivative markets...

About the Author

FRNT Financial is a technology and sales layer that offers institutional and accredited investors access to various forms of exposure to crypto-assets.