Poloniex exchange has entered the big league with the launch of its own crypto futures platform. Poloniex Futures will provide up to 100x leverage on popular trading pairs, starting with a BTC/USDT perpetual contract. The exchange will offer traders the highest maker rebates of any futures exchange, promising a standard fee schedule of -0.026% for the maker and 0.075% for the taker. In launching a dedicated futures platform, Poloniex joins other industry big hitters such as Binance and KuCoin that have built a successful spot exchange before expanding to futures.
Poloniex Faces a Bright Future
Demand for bitcoin futures has been growing steadily all year, with futures volume now eclipsing spot by 5:1. As retail traders have rushed to get in on the act, exchanges have moved to integrate futures markets into their existing infrastructure, minimizing friction for users and maximizing uptake. Poloniex has adopted this policy with its futures exchange, enabling existing customers to transfer their wallet balance over to the new platform and start trading instantly.
Futures exchanges are duty-bound to act responsibly when offering high leveraged products in which there is the potential for inexperienced users to lose funds. Poloniex has honored this commitment by launching in beta initially, during which time traders will only be able to play with demo funds. This will provide an opportunity for users to familiarize themselves with the trading environment without risking real crypto in the process. 10,000 USDT of test funds is available to each user for the duration of the beta testing period.
BTC From Launch With More Contracts to Follow
Initially, BTC-USDT will be the only market available on Poloniex Futures, which is to be expected given that bitcoin accounts for 90% of all futures trades by volume. Once the platform’s BTC market has had a chance to bed in, however, additional markets will be introduced. These are likely to include ETH and TRX, both paired against USDT.
To trade futures contracts on the new-look Poloniex, users must be level two verified. Initially, Poloniex Futures will be available to web and API users, but a mobile trading app is set to be released further down the line. A 1,0000 USDT giveaway has been offered to the first 100 Poloniex users to sign up and place a trade, while an additional 500 USDT has already been distributed to promotion winners.
TRON-Poloniex Partnership Bears Fruit
Since taking over Poloniex as part of an investment consortium, TRON founder Justin Sun has remodeled the exchange to meet his vision of what a modern crypto trading hub should look like. Changes have ranged from the simple – listing TRX – to the bold, such as adding a token listing launchpad and now moving into futures. Poloniex will face a battle in capturing market share from rivals that have been offering bitcoin perpetual contracts for years. However, Poloniex has a number of things working in its favor, including its lengthy track record, having been serving the retail market without major incident since 2014. Coupled with Justin Sun’s marketing nous, and there’s grounds for optimism on the future of Poloniex Futures.