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Binance Acquires JEX, An Exchange Based In Seychelles

Binance, the world’s largest and most coveted cryptocurrency exchange, has acquired JEX, a little-known derivatives platform based in Seychelles. Binance made an announcement to this effect on Monday. This is a move by Binance to break into the futures market.

According to a press release, JEX is to undergo rebranding. Post the rebranding, JEX will be called Binance JEX. It will offer derivatives products, including options, futures, and perpetual contracts. Binance will also take over the native JEX tokens and manage the JEX team. This step is supposed to add more utility to the JEX tokens.  The plan is to distribute JEX tokens gradually to all users via marketing activities and community incentives. Later, the tokens will be retrieved and burned gradually in various forms including trading commission deductions. Binance welcomed the JEX team to the Binance ecosystem with pleasure and enthusiasm. The “seasoned developer team with proven experience in crypto-asset product development” is valuable to Binance.

For the next few weeks, Binance will allow its clients to trade on both the JEX platform as well as its in-house platform. Participating traders can beta test the two platforms, get a sense of which platform is superior, and vote for their favorite. They can win up to 10,000 BNB tokens in this process. Based on this feedback, Binance will pick a winning platform after the testing period.

According to Binance, the competition provides excellent scope for testing the usability of a product.  It supports decision-making by allowing a complete review of products based on scalability, market feedback, and liquidation model design. Binance has also developed its own bitcoin perpetual swap paired against tether.

The derivatives market is one of the most competitive ones in the cryptocurrency trading space with established brands like BitMEX and Deribit. These brands have already witnessed a growth in their volumes in recent months. With the debut of its derivative platform, these are the waters Binance is wading into.

The past few months saw Binance introducing some interesting new releases.  In order to let its users leverage various virtual currency trading pairs, it equipped margin trading. It also launched the big lending feature which enables users to give their crypto wealth as a loan at a specific preset time at an annual rate of interest.

The acquisition of JEX by Binance comes at a time when the world is inclining towards the derivatives market. In recent times, Binance has made consistent inventions of futures trading on its platform. According to Binance, the new products will be out in the market by September.

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About Shreya Kapoor

20 y/o budding journalist, with a tinge of good vocabulary.

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