Binance has continued its quest for crypto dominance by acquiring derivatives platform JEX as it seeks to expand its futures and options offer. The purchase of JEX, which offers “professional BTC futures, Bitcoin options and other crypto options” is an example of how serious CEO Changpeng Zhao is taking Binance’s presence in the crypto futures market, which isn’t surprising given how it has sucked up most of the trading volume throughout the bear market.
Seychelles-based Jex, despite being little known in the cryptocurrency sphere, is “the first blockchain asset transaction platform that initiated Bitcoin options trading and other crypto options trading in the world.” Given that many have criticized the lack of a truly professional-grade futures trading solution, this move from Binance could entice more serious futures traders away from existing platforms and onto a crypto-specialist one.
Lending Platform Sees Addition of ADA
Binance also recently announced the introduction of the second phase of their lending platform, following a full subscription of the first phase. The expansion sees the addition of the ADA token for lockup and the introduction of 28-day lockups – this means that 14-day lockups are available for USDT, ETC, ADA, ETH, and BTC, with 28-day lockups available for BNB, USDT, and BNB. The annualized interest rate for the new wave ranges from 3% to 10%, with a 28-day lockup of BNB offering the highest rate of return.
— Binance (@binance) September 3, 2019
While the proposition of 10% interest for just locking up your coins may sound enticing, when the platform first launched a week ago we warned that locking up potentially volatile alt coins might not work out too favorably. This has turned out to be the case, as those who locked up their BNB tokens for 15% interest on opening day, which works out as 0.1% actual interest during the 14-day lockup, saw the value of the BNB token crash 17% almost immediately. We hope for their sake the token is back at the same value when the lockup ends on September 11.