BitMax.io (BTMX.com), FTX.com, and Alameda Research have announced a strategic collaboration that includes the listing of BTMX on FTX.com and listing of the Leveraged ERC20 Tokens on BitMax.io. FTX.com will offer spot market trading of BTMX token as well as futures trading on perpetual and quarterly settled markets. Additionally, FTX.com will offer access to BTMX via its over-the-counter (“OTC”) trading portal. At the same time, BitMax.io will list four 3x Leveraged ERC20 tokens: BTCBULL, BTCBEAR, XRPBULL, XRPBEAR on USDT order books.
Leveraged ERC20 tokens are assets that can be traded on cash or spot markets that grant holders leveraged exposure to the respective token’s underlying crypto assets. BTMX is the native utility token to the BitMax.io platform that grants users eligibility for a variety of platform services and benefits.
BitMax.io, FTX.com, and Alameda Research are thrilled to establish this strategic collaboration in order to further expand their respective ecosystems and enhance the liquidity and trading efficiency of BTMX and Leveraged ERC20 tokens.
What are Leveraged ERC20 Tokens?
Leveraged ERC20 Tokens were initially created by the team at FTX, one of the fastest-growing cryptocurrency spot and derivatives trading platforms. Leveraged ERC20 tokens are assets that can be traded on cash or spot markets that grant holders leveraged exposure to the respective token’s underlying crypto assets. For example, BTCBULL, a 3x long BTC token, tracks the price of BTC – for every 1% BTC goes up in a day, BTCBULL goes up 3%; for every 1% BTC goes down, BTCBULL goes down 3%.
Leveraged ERC20 tokens provide a viable alternative to margin trading and offer traders distinct advantages regarding (1) risk mitigation, (2) margin management, and (3) transferability.
Risk Mitigation: Leveraged tokens automatically reinvest profits into the underlying asset. Accordingly, if a leveraged token position appreciates in value, the tokens automatically apply a leveraged position to the profits. Conversely, leveraged tokens automatically reduce risk if they depreciate in value. For example, if a margin trader put on a 3x long BTC position and BTC falls 33% over the course of a month, the trader’s position will be liquidated. If the trader instead purchased the leveraged ERC20 BTCBULL Token, the token would automatically sell off some of its BTC as the markets go down – likely avoiding liquidation so that the trader retains a position even after a 33% market movement.
Managing Margin: Leveraged ERC20 tokens can be bought or sold on cash or “spot” markets just like any other ERC20 asset. This eliminates the need to manage collateral, margin, or liquidation prices.
Transferability: Leveraged ERC20 tokens can be withdrawn from an exchange directly to an external wallet just like any other ERC20 asset. This allows traders the ability to custody their own assets or transfer them from BitMax.io to other platforms that offer trading, such as FTX.com.
FTX.com & Alameda Research
FTX.com is one of the industry’s fastest-growing derivatives exchanges that offers traders access to an innovative margin system, simplified collateral, deep liquidity, crypto’s first index futures, and leveraged ERC20 tokens. Backed by Alameda Research, an industry-leading quantitative trading firm, FTX.com is a strong, dynamic exchange that fixes the largest problems with existing leveraged products.
What is BitMax.io (BTMX.com)?
Founded by a group of Wall Street quant trading veterans in July 2018, BitMax.io (BTMX.com) is a leading digital asset trading platform with a broad range of financial products and services for both retail and institutional clients. The platform services sophisticated buy-side & sell-side institutions in both Eastern & Western demographics who are seeking highly liquid digital asset markets.
With its core values of efficiency, resilience, and transparency, BitMax.io has successfully set itself as a leader in the digital asset trading space with its distinguished token economics and rigorous product design from innovative volatility card to margin trading.
Collaboration between Industry-leading Blockchain Institutions
BitMax.io, FTX.com, and Alameda Research have forged a strategic relationship since BitMax.io first listed FTT, the FTX.com derivatives exchange ecosystem token, in July of 2019. Since listing, BitMax.io has consistently been amongst the most liquid and active trading marketplaces for FTT. Alameda Research has also since onboarded with BitMax.io and rapidly emerged as one of the platform’s highest-volume trading institutions. With regards to the strategic collaboration, Shane Molidor, Head of Business Development at BitMax.io states:
Strategic alignment between BitMax.io, FTX, and Alameda Research was evident from the start. The team is comprised of some of the most innovative minds in the space, and their professional institutional backgrounds align with the Wall Street DNA of the BitMax.io leadership team.”
In further support of collaboration, Sam Bankman-Fried, CEO of FTX.com and Alameda Research notes:
BitMax.io’s infrastructure and connectivity compliment Alameda’s sophisticated trading systems well. We’ve been consistently impressed by the platform’s innovative products as well as the institutional client servicing, which is all too often overlooked amongst many crypto-to-crypto trading platforms.
The collaboration between BitMax.io, FTX.com, and Alameda Research represents a strategic milestone for each institution in their efforts to support the advancement of blockchain technology and the trading infrastructure that underpins the industry.
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