According to the latest tweet from Binance, the global cryptocurrency exchange is launching a Zcash (ZEC)- Tether (USDT) perpetual contract with a maximum leverage of up to 50x. The announcement revealed that the trading of the new ZEC/USDT contract would be live from February 5, 2020. According to the global cryptocurrency Exchange, pricing limit of ±1% on the marked price will be set within the first 15 minutes after the beginning of trading. This step is taken to prevent manipulation in cryptomarket.
Binance is aiming to create a network of fast trading amongst the professional traders. The Exchange attracted massive institutional participation after the launch of its Futures platform.
Changpeng Zhao, CEO of Binance, explains that unlike the traditional futures contract, there would be no expiration or settlement date for perpetual contracts. Perpetual Contracts will not depend on the predetermined settlement time; instead, they mimic discrepancies between the spot and futures market. Traditional futures hold the chances for manipulation as it depends on the predetermined settlement time, but the contracts aim to resolve the shortcoming. The perpetual contract is basically an attempt to take advantage over Futures as it is related to non-delivery of the actual commodity. In essence, traditional futures were launched for fresh investments in the crypto market, but over time, professional seems to manipulate the prices of the contracts. So, to upkeep the sentiments of new players as well as potential investors, Binance is all set to launch perpetual contracts.
Binance started coming into the scene in 2017, and since then it has managed to become one of the top crypto exchanges in the world. Beyond the futures’ platform, Binance is globally expanding and diversifying with the massive availability of cryptocurrency investment options. According to the CEO of Binance, the new form of futures contracts, i.e. perpetual contracts leads to the expansion of the market of cryptocurrency.