Binance is a notable cryptocurrency exchange platform. It is popular for owning the most substantial cryptocurrency in the world. Moreover, Binance’s cryptocurrency comes with the proper trading value when compared with the other cryptocurrencies. Binance said that it acquires JEX, a notable cryptocurrency futures exchange platform that focuses on cryptocurrency derivatives
In addition to this, JEX focuses on the transactions which take place in distinctive blockchain across the industry. The acquisition would help Binance in excavating the derivative in the cryptocurrency market. The acquisition of JEX took place on the 2nd of September. The JEX cryptocurrency platform is capable enough to provide derivatives and spot for different trading services.
The crucial purchasing signifies that Binance has an interest in the trading market of Cryptocurrency derivatives. The notable cryptocurrency firm, Binance, at the beginning of 2019 did announce about its margin services for trading. By the looks of it, the latest acquisition would allow the company to provide its user access to the contracts in the future alongside the trading market.
The birth of Binance JEX
According to sources, the cryptocurrency exchange platform JEX would go through rebranding. The sources suggest that the Binance will rebrand JEX as Binance JEX. Once the rebranding is complete, Binance will begin to offer several derivative products such as perpetual and future contracts for the Binance users.
On the other hand, the new exchange would begin to offer leverage trading of around 20x on Tether/Bitcoin pair. According to the previous report by Cryptopolitan, Binance is planning to launch the trading platform in the future. In the statement, Cryptopolitan said that the new platform would only leverage trading on the pair of USDT/BTC, initially. Binance did also come out with the launch of the margin trading services.
As of now, JEX incorporates the spot trading of over twenty assets such as Ethereum, Binance Coin, and Bitcoin. The spot trading volume of JEX is a little lower than $400,000, i.e., $379K. JEX also has a cryptocurrency token of its own. On the other hand, the price of the token did spike after Binance bought the company. New reports suggest that almost half of the JEX tokens are currently in use after Binance’s acquisition of the company.
Binance’s entry into the derivative trading market
Other hand acquiring the team behind JEX, Binance also gains possession of the JEX cryptocurrency tokens. Now, the expertise of JEX’s cryptocurrency team can be utilized by Binance for maximum profit. Also, Binance ecosystem would bring a never-seen-before innovative right into the derivative products. Bianance also said that it would launch some new products in September.
Yi He, Binance’s co-founder, said that the acquisition states that the derivative products of JEX will align with the business strategy of the company. Furthermore, this would bring forward the constant quest, which is essential to bring forward innovation. Yi He also said that Binance is in a continuous pursuit for innovation. In addition to this, Binance is also open to much acquisitions and strategic partnerships in the future.