BaseFEX, a professional cryptocurrency derivative trading platform, today announced the launch of the world’s first USDT-Settled Perpetual Contracts. BaseFEX offers pairs BTC/USDT with up to 100x leverage and ETH/USDT with up to 20x leverage.
“BTC is usually used as cash in today's derivative world, but its volatility makes it not suitable for the purpose. When you short BTC using BTC, you lose more than you should since your margin is less valuable along the way.” says Jesse Wu, CEO at BaseFEX, “Stablecoin is obviously a better cash than BTC. That would result in a product that is much more easier to use for even professionals.”
USDT, also known as Tether, is the most popular stablecoin and even acts as a substitute for the dollar in many popular exchanges. Tether converts cash into cryptocurrency to anchor or bond the value of the coin to the price of fiat currency, i.e. US dollar. The main use of Tether is that it offers some stability to the otherwise volatile crypto space and cash on the stock exchanges that can not trade in dollars and with the banks. The value of USDT (Tether) is always being fixed equivalent to 1 USD. As the most popular stable coin, Tether is being used in 40% and 80% of all transactions on the world’s two top exchanges, Binance and Huobi, respectively.
There’s been an ongoing investigation into Tether over the allegation that Bitfinex was trying to cover up the $900m loss by borrowing them from Tether. Moreover, 80% of the Tether in circulation are controlled by only the 318 addresses. But still there is no stablecoin that is showing the potential to take its place.
Traditionally, Perpetual Contracts are settled by the BTC with significant volatility. Now the advent of USDT-settled contracts at BaseFEX makes it possible for traders to trade more confidently without fear of losing value due to price volatility in BTC.
Besides introducing USDT perpetual contracts, BaseFEX’s daily volume has increased to 800 million USD in Q3 from 200 million USD in Q2 2019. The company offers BTC futures trading with up to 100x Leverage, with world's lowest taker fee at 0.07%.
BaseFEX is one of the safest exchanges among all crypto derivatives/futures exchanges in the world, as it is one of the only four crypto exchanges that score A+ in Mozilla’s Observatory test out of more than 400 exchanges.
For more information on USDT-settled Perpetual Contracts, visit BaseFEX.com.
About BaseFEX: Founded by Jesse Wu, BaseFEX is cryptocurrency derivative exchange that leverages cutting-edge technologies, dedicated to providing traders across the globe with transparency, phenomenal liquidity and unprecedented smooth transaction experience and helping them trade more, and trade better. Visit BaseFEX.com to get more information.
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