If a few weeks ago somebody was saying that there is a chance for Ethereum to reach $2,500 by the end of the year, they were immediately mocked by a lot of enthusiasts. Still, the scenario is possible right now, as Ethereum Futures was launched.
A try to improve the market, to dictate the price of ETH?
According to Ethereum World News, United Kingdom-based trading platform Crypto Facilities announced the launch of Ethereum Futures, in an attempt to bring greater efficiency and liquidity to the cryptocurrency markets.
The new derivates are now available on the platform it could have a big impact on the price of Ethereum itself, but also many coins which were built on its blockchain.
Currently, Crypto Facilities has 4 Futures products, including Bitcoin, Ripple, and now Ethereum. As a side note, Ripple is the only digital asset with an extra product of Ripple to Bitcoin Futures, on the top of XRP/USD futures. Therefore, this adds up to 4 crypto futures products, as mentioned above.
The basic principles of an Ethereum Futures contract
Technically speaking, in traditional stock market trading, a Futures contract represents a legal agreement made on the trading floor of a futures exchange, in order to buy or sell a particular commodity at a predetermined price, at a specific moment in the past.
Futures contracts are basically strandardized, as this facilitates trading on a futures exchange. Depending on the underlying asset which is traded, the quality and quantity of the commodity is influenced.
Obviously, a lot of people are now talking about the possibility of Ethereum reach a value of over $2,500 by the end of the year. A prediction regarding this was made by CEO of deVere Group, Nigel Green. Considering this, as well as many other opinions, Crypto Facilities decided that the new derivative of ETH futures should be created.
“Ether is the second most liquid cryptocurrency after Bitcoin, trading in the billions of dollars daily, and we are excited to be launching ETH futures. The Ethereum network is the pre-eminent blockchain for smart contracts, and we believe this new trading instrument will attract more investors and bring greater liquidity to the marketplace,” said Crypto Facilities CEO, Timo Schlaefer.