CloseCross, a MIFID regulated trading platform, has announced the launch of the Ethereum based multiparty derivatives platform for all asset classes including crypto, stocks, indices and other instruments in a non-custodial distributed ledger setup.
The beauty of these derivatives is that the traders can now generate returns based on their price predictions in any direction, including the prediction of stable prices. This is very different from what most of the other derivatives platforms allow.
The entire platform is blockchain based which means that hundreds of traders enter into a single smart contract rather than each individual trader having to enter a separate contract with a centralised contract issuer. In other words, this new product makes full use of the decentralisation concept of the blockchain and removes the need for a centralised setup to manage these contracts.
The trading platform does not charge any participation fees and the facilitation fees are charged only on winning trades, helping to save a lot of money for the traders, especially those who trade with high frequency and this should help the traders in re-investing their fees savings in more trades generating more chances of returns.
Leverage is also not required and traders can trade with as little as $1. The platform is also MIFID regulated which makes it one of the first crypto trading companies that is MIFID regulated.
Vaibhav Kadikar, Founder and CEO of CloseCross said: “CloseCross enables a level playing field for traders. No longer should 75% or more traders lose money when trading against a centralized derivative/CFD issuer. It’s just unfair. The global market is worth around $1200 trillion a year but has always been highly concentrated and exclusive with issues around complexity, difficulty of use, high costs and unquantified risks stemming from leverage and margin call liquidations. All these are absolutely unnecessary.”
Kadikar added “CloseCross is about unprecedented transparency, free access to the crowd wisdom and offering great potential returns without the need for leverage.”
CloseCross also said that though the current platform deployment is in Ethereum, it would be looking towards multi-protocol deployment in the near future. The protocols under consideration include Binance Smart Chain, Solana, Matic/Polygon etc.
Crypto trading has been booming all around the world over the last few months and various platforms are investing a lot of time and money to come out with innovative solutions to keep pace with the developments in the crypto world and also make themselves attractive to the traders. Only time will tell us about which of these would evolve into stable and strong platforms that capture the attention of the traders and their trading volume as well.
