Binance has announced the launch of two futures testnet platforms. 10,000 BNB will be given away to users that participate in the simulated trading competition designed to help Binance optimize its futures platform.
Binance is moving closer to the launch of its much anticipated futures offering. As part of a dual platform strategy, Binance recently acquired JEX, a spot and derivatives trading platform. The platform will be rebranded and tested by Binance users.
Yi He, a Binance Co-founder, says JEX has a quality team of developers with proven experience in crypto product development. “JEX has developed solid derivatives product offerings including perpetual contracts and options, which are aligned with Binance’s derivatives product roadmap,” said He.
Binance has already been working on its own internal futures trading platform, and now in an unusual move, it is inviting users to trial both platforms in a paper trading competition.
The competition will allow a large number of users to beta-test the Binance platform, and the JEX platform, and gather user feedback and data on both products. Participating traders can vote for their favorite for a chance to win up to 10,000 BNB tokens. Users that correctly vote for the winner will also receive a 50% trading fee discount on the official Binance Futures Platform for one month.
Binance will continue to manage the JEX team and the JEX tokens. Over the longer term, the JEX tokens will be distributed to users via Binance marketing activities and community incentives. Using a similar model to the successful BNB token, the tokens will be retrieved and burned through trading commission deductions and other similar initiatives.
A Heated Market
That Binance is willing to launch two competing products to best optimize its final futures trading platform speaks to the highly competitive futures trading market. BitMEX remains the market leader, and its users have grown exponentially as traders have been attracted by margin trading. BitMEX, however, is prone to overloading during periods of peak volatility. If Binance can offer a superior service, it will pick up traders at the expense of Bitmex.
Source: Brave New Coin