JEX is a derivative exchange, which had its operations based in Seychelles. According to the acquisition contract, JEX will be renamed Binance JEX, and will support the trading of derivatives products, such as futures, options, and perpetual contracts.
From now on, Binance will also be in charge of managing the JEX team and its native JEX tokens.
Binance revealed a month ago that it was working on its futures platform, and yesterday it launched two testnet platforms for its users. According to trading volume, the number one exchange will allow trading both on the JEX platform and the one their proprietary one to enable users to compare their performance.
The users that test Binance’s two futures platforms are able to vote for their favorite and get a chance to collect a prize of 10,000 BNB tokens. After the trial period is over, Binance will select the winning platform that was most liked by users.
A Binance spokesperson explained the reason for two competing platforms:
“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.”
The exchange also launched its bitcoin perpetual swap paired against Tether:
“Like existing cryptocurrency futures markets, Binance offers perpetual futures based on a BTC/USDT pair, which serves as a complementary product to our existing BTC/USDT spot pair.
We’ve chosen to launch the futures product with pricing and setting similar to our flagship spot product, so traders can feel at ease and easily get started trading futures on Binance. Read more about the differences between Spot and Futures markets here.
The BTC/USDT futures contract is only the first of many new products that will be introduced on Binance. Currently, all products traded on Futures will require collateral in the form of USDT, and all products will be priced in USDT.”
Binance first announced in February that it will get involved in the derivatives market by offering financial products such as perpetual swaps, futures, and options.
Featured image: MoonCatcherMeme