It was just announced from Seychelles-regulated cryptocurrency derivatives exchange BitMEX, the company is now offering futures on the Gnosis altcoin (symbol: GNO).
Yesterday, Gnosis, a company who is building a prediction market application powered by Ethereum held a record-breaking ICO with over $300 million raised, blowing past the $12.5 million cap in just minutes.
How will GNO futures be quoted?
The GNO futures’ underlying is GNO/XBT spot exchange on Poloniex. (It was formerly to be the GNO/XBT exchange rate on Kraken as recorded in the .GNOXBT Index.)
Further, GNOM17 will switch from the Last Price to Fair Price Marking and The Limit Up / Down restrictions will be removed.
The futures are quoted in bitcoin and all margin and PNL calculations are denominated in bitcoin.
| Contract Calculations | |
|---|---|
| Multiplier | 1 |
| XBT Contract Value | Multiplier * Futures Price * 1 GNO |
| USD Contract Value | XBT Contract Value * XBTUSD |
| PnL Calculation | # Contracts * Multiplier * (Exit Price – Entry Price) |
Traders who think that the price of GNO will rise will buy the futures contract. Conversely, traders who believe the price will drop will sell the futures contract. The GNO futures contracts feature leverage of 2:1.
Arthur Hayes, CEO of BitMEX stated the following:
“With a $300 million market cap GNO, in under ten minutes, has become the 8th most valuable digital currency. Many think this is scandalous. However, armed with nothing more than a slick website and a promise to deliver, Gnosis right now is proving to be an altcoin heavyweight.”
“Others believe in the future promise of a truly decentralized prediction market. The centralized online gambling and prediction market is massive. If Gnosis only partially delivers on their mission statement, it will still be ‘bigly’ valuable.”
“Whether Gnosis is a shitcoin or supernova is a question that only the market can answer. Because BitMEX is committed to providing price discovery, we have launched the Gnosis / Bitcoin 30 June 2017 futures contract, GNOM17.”
“Traders can go long or short GNOM17 using only Bitcoin, with up to 2x leverage. GNOM17 begins trading before GNO tokens list on any secondary spot market. Trading on Kraken and or Poloniex will most likely begin in under a week.”
To view the BitMEX Gnosis futures contract specifications click here.