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To Hedge Against BTC’s Volatility, Phemex Launch GOLD/USD Pair to Trade Gold Perpetual Contracts With up To 100X Leverage

Singapore-based cryptocurrency derivatives exchange Phemex, has rolled out a proprietary perpetual contract pegged on gold and settled in nominal USD that they say is the first GOLD/USD perpetual contract that can be traded with up to x100 leverage.

It is pegged price-wise by the combination of several indexes: (40%), (20%), (15%), (15%), and (10%). 

Phemex’s CEO Jack Tao commented:

“This is just the beginning for non-crypto assets on the Phemex platform, the roadmap for 2020 includes stock indexes, interest rates, FOREX, commodities, other metals, and energy resources.”

“Considering Bitcoin’s recent volatility, the Phemex team has introduced this novel product in order to help their users hedge their risk with as many options as possible.”

Each contract is worth 0.001 troy ounce of gold and they say the index is updated and published every second. If any of the sources disconnects, it will be temporarily removed from the calculation until a connection can be re-established. The weight of the disconnected source will be proportionally reallocated among the remaining sources.

Perpetual contracts trade at close to the underlying market price for bitcoin, because of a funding mechanism that requires long and short contract holders to exchange payments every eight hours.

While various crypto exchange platforms have shown an increased interest in the derivatives market, the Phemex powered derivatives platform is one of a kind, as it is designed to be the world’s most trustworthy with a fully transparent, fair pricing mechanism matched with unrivalled speed and the fastest matching engine available.

Richard Kastelein
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, the Netherlands where he has set down his anchor to raise a family and write. Founder and publisher of industry publication Blockchain News (EST 2015) and director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He has written over 2500 articles on Blockchain technology and startups at Blockchain News and has also published in Harvard Business Review, Venturebeat, Wired, The Guardian and a number of other publications. Kastelein has an Honorary Ph.D. and is Chair Professor of Blockchain at China's first blockchain University in Nanchang at the Jiangxi Ahead Institute software and Technology. He has over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division. Kastelein has spoken (keynotes & panels) on Blockchain technology at over 50 events in 30+ cities.
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