LedgerX has turned out to be one of the most effective cryptocurrency exchanges. It is also one of the youngest exchanges, as they first received approval to begin trading in July and only started trading at the end of October, 2017.
In the short time that LedgerX has been active, the exchange has boasted remarkable figures. In first week of operations, the exchange traded more than $1 million in notional value.
Regarding their impressive returns, the CEO of LedgerX, Paul Chou, stated:
"This week, a new standard is set for transparency, oversight and counter-party assurance. Institutional investors and traders can now rely on a guaranteed clearing and settlement process when transacting bitcoin contracts."
These impressive numbers have been observed while the company has been going through its soft launch; it has not even completely launched as of yet.
The firm just announced its first long-term bitcoin futures option. With the release of one of the first cryptocurrency futures option, the company is destined to become one of the most sucessful exchanges.
Chou originally considered the futures option a risky move for the new firm, but was impressed by its success as institutional investors agreed to the terms of the contract just a day after its release. Under the terms of the agreement, the investors agreed to buy bitcoin at a price of $2,250.25. If the price of Bitcoin reaches $10,000 by next year, the investor will earn the premium over the trade. However, if the price falls to $0, the investor will not be liable to purchase the bitcoin for $10,000.
The interest of the investors in different kinds of trading related to bitcoin and cryptocurrency, in general, shows how the level of trust that investors have in cryptocurrencies.
While talking to CoinDesk, Chou stated:
"There will be, I expect, a lot more trades down the line. This is the first one, but it at least gives you the first guess from different institutional traders as to what bitcoin's dynamics will look like from now until 2018."
LedgerX made its own prediction regarding bitcoin using their Nobel-prize winning algorithm. Based on the Black-Scholes financial market model, this algorithm stated that there is 25% chance that bitcoin reaches that price in the allotted time period.
LedgerX may have first-mover advantage, but the company has yet to launch its full operation. Chou explained that the delay can be the result of LedgerX’s team working hard to make sure that their platform can handle more than one million messages per day. He gave a rough estimate that it may take around a month to start full operations, but it could be sooner.