Huobi Derivative Market (Huobi DM) will Launch XRP

[Julian_Williams]

Huobi Derivative Market (Huobi DM) will launch XRP contract at SGT 18:00 p.m. Mar. 29, 2019. For more details of XRP contract:

 

https://huobiglobal.zendesk.com/hc/en-us/articles/360000219761-Huobi-DM-will-Launche-XRP

https://www.hbdm.com/en-us/

 

Just realised XRPMummy has posted a related story here - but I think this is a new development

The old thread has more information about what Huobi is

such as this information from MeGodzillo

Quote

 

I find the Huobi branding/exchange naming confusing... If anyone else is confused, here's what I've discovered:

Huobi Global:

• is the parent exchange
• has crypto/crypto markets
• has XRP/BTC, XRP/USDT and XRP/HT ("Huobi Token") pairs

Huobi OTC:

• has crypto/fiat markets
• about to allow many XRP/fiat pairs for OTC trading

Huobi:

• is a US exchange, formerly HBUS, now owned by the Huobi Global parent company
• has mostly crypto/crypto markets
• has a few crypto/USD markets
• does not list any XRP pairs

 

 

Edited March 27, 2019 by Julian_Williams

[Caracappa]

I don't understand the derivatives market, but in what way is XRP to benefit from this? They do not actually buy XRP, correct? So the cash that could have flown into XRP is now flowing in a derivative of XRP?

[Julian_Williams]

https://news.bitcoin.com/volume-huobi-derivative-20-billion/

 

  Quote

 

Huobi DM Cumulative Trade Volume Doubles in 2 Weeks

Huobi Derivative Market has announced that the cumulative trade volume on the platform has exceeded $20 billion as of Jan. 12, 2019. As such, cumulative trade on the platform doubled in just 15 days.

Huobi’s derivative platform launched in beta on Nov. 21, 2018, for BTC contract trading only. On Dec. 10, 2018, Huobi DM exited beta mode and was integrated with Huobi Global and posted a 24-hour volume of $195 million.

On Christmas day, Huobi announced that daily trade volume had surpassed $1 billion for the first time. On Dec. 28, 2018, Huobi DM claimed that cumulative volume on the platform had exceeded $10 billion alongside the launch of EOS contract trading.

Livio Weng, the chief executive officer of Huobi Global, stated that he is “pleased” with the strong response,” describing the platform’s growth as “explosive,” despite the cryptocurrency markets being “in the midst of an ongoing bear market.”

Bittrade Merger Facilitates Japanese Relaunch for Huobi

On Thursday, Huobi announced that it had relaunched a fully regulated exchange under Japan’s Financial Services Agency (FSA) following a merger with Bittrade. As such, Huobi Japan has been granted one of the first 17 licenses issued by the FSA.

The founder of Huobi Group, Leon Li, stated that the relaunch was an “important milestone,” emphasizing the importance of the Japanese market to the company. Li also described working with regulators as “a longstanding priority for Huobi Group.”

Huobi Japan currently supports BCH, BTC, ETH, LTC, XRP, and MONA pairings.

Do you think that cryptocurrency derivative markets will come to dwarf the spot markets in trade volume in coming years? Share your thoughts in the comments section below!

 

 

[Julian_Williams]

2 minutes ago, Caracappa said:

I don't understand the derivatives market, but in what way is XRP to benefit from this? They do not actually buy XRP, correct? So the cash that could have flown into XRP is now flowing in a derivative of XRP?

Me neither - although they do trading in pairings as well

[XRPRJB]

At the risk of sounding like a fudster, what difference does any of this make?

We very clearly are not being given all the pertinent information, particularly from Japan. The more this SBI crowd "guarantee" this or that exchange will open and transform the market overnight before failing to deliver and delaying an entire business launch by half a year with a bland tweet, the more I think the Japanese market is a screwball run by amateurs. One thing we can be virtually certain of here is that this Huobi development will not make a blind bit of difference to the price of XRP.

Before folk start jumping up and down, I am NOT a fudster and have been in this market for over 2 years holding XRP and adding to the stack every week but at some point we need to start asking what the hell is going on. This exchange is yet another outlet for XRP and yet we are not growing..

 

Sorry for the negative post.

[Benchmark]

52 minutes ago, XRPRJB said:

At the risk of sounding like a fudster, what difference does any of this make?

 

Maybe none. But still useful to see news regarding the XRP ecosystem.

[Julian_Williams]

1 hour ago, XRPRJB said:

At the risk of sounding like a fudster, what difference does any of this make?

We very clearly are not being given all the pertinent information, particularly from Japan. The more this SBI crowd "guarantee" this or that exchange will open and transform the market overnight before failing to deliver and delaying an entire business launch by half a year with a bland tweet, the more I think the Japanese market is a screwball run by amateurs. One thing we can be virtually certain of here is that this Huobi development will not make a blind bit of difference to the price of XRP.

Before folk start jumping up and down, I am NOT a fudster and have been in this market for over 2 years holding XRP and adding to the stack every week but at some point we need to start asking what the hell is going on. This exchange is yet another outlet for XRP and yet we are not growing..

 

Sorry for the negative post.

I think crypto is a new market cultivating new territory - so we are all amateurs.

Regarding the Japanese.  If you read the interviews given by Kitao (SBI) you will find that he is a very experienced banker who thinks deeply about which way the crypto market is developing.  The Japanese are showing themselves to be more innovative and more willing to get their hands dirty than most other developed economies, and they are first movers making big advances ahead of the Europe and the US.  Of course they will make some mistakes and they will not hit every target.  The Japanese have a history of refining their products and paying attention to detail and they are amongst the fastest growing segment of the XRP ecosystem.

Edited March 27, 2019 by Julian_Williams

[RecentChange]

 

57 minutes ago, XRPRJB said:

At the risk of sounding like a fudster, what difference does any of this make?

We very clearly are not being given all the pertinent information, particularly from Japan

The Japanese are ahead in terms of regulations. Most of there banks have lined up with SBI/Ripple. The necessary infrastructure is being built. Only thing missing is our patience.

[XRPRJB]

All balanced and well reasoned replies, many thanks. I was just having a wobble. It's easy to forget just how young this market it when you are this close to the elephant. I'm not sure what part of the beast I am staring at because all I see is a dark tunnel... I hope it's the trunk.

[Broxi]

If it's anything like what happened to the price of BTC when BTC futures started then it won't be good news XRP 

[enrique11]

12 hours ago, Caracappa said:

I don't understand the derivatives market, but in what way is XRP to benefit from this? They do not actually buy XRP, correct? So the cash that could have flown into XRP is now flowing in a derivative of XRP?

It depends.  If it's cash-settled like CBE BTC futures were, then IMO it contributes very little to this space (I think it does more harm than good), because cash-settled means when the contract pays out, it does so in cash, so investors can bet on the future price of XRP using cash which doesn't help the crypto space grow IMO.  Also a lot of short-positioned futures relative to long-positioned contracts (this means more investors think future price will go down than up) can give crypto investors (hodlers) a negative impression of the future value of the underlying asset causing some of them to exit their postions partially or worse, so again, not good.   At best, some new legacy investors will get indirect exposure to XRP market, but not get their hands dirty in XRP so to speak. Also, speculators can speculate using futures, highly risky, particularly in this instance since the contracts can be entered into on margin (borrowing to enter into contract position, very risky), also, futures might be of use to some XRP investors who want to hedge against future negative price movements that can affect their XRP holdings. 

The only related post of this news I've looked at so far is the following --->> https://dailyhodl.com/2019/03/27/huobi-announces-xrp-futures-launch-as-ripple-moves-millions-in-crypto/

...and if you look at the infographic in the center of the article, they put a 'sneaky' reference in there as to how contracts will be settled, stating, 

Quote

settled in digital asset price difference

This exchange is based is Singapore, but futures (contracts) are priced in USD.  

I was nervous at first because I thought these futures would be like CBE BTC futures which are cash-settled only, contributing IMO very little to this space, actually keeping investors out of this space by letting them do cash bets on BTC -  investors place cash bets and the winners take cash, losers lose cash - no BTC involved. 

But looking at the following post under Huobi's website --->> https://huobiglobal.zendesk.com/hc/en-us/articles/360000113102-Introduction-of-Huobi-DM

Quote

BTC/ETH/EOS/LTC Contracts are available on Huobi DM. Contracts are priced in USD, with corresponding digital currency( BTC/ETH/EOS/LTC respectively) as margin to open positions, and PnL is also settled in corresponding digital currency( BTC/ETH/EOS/LTC).

It's leveraged trading/betting which means you don't have to put as much down in digital asset to buy futures contracts.  The great news is they don't appear to be cash settled, meaning investors will get paid full in the underlying digital asset if the futures contract is in the money when executed - this means investors, some of them likely new to cryptos, can get involved in digital assets / cryptos, IMO helping to grow this space with fresh capital. Also, these are new financial products (derivates) which help expand the XRP ecosystem. Also, large positions IMO likely from institutional investors are not very liquid, so they could use futures as hedging technique against large, relatively illiquid positions I would assume.

They don't metion XRP by name, but I feel certain it will apply to it as well - the webpage needs updating.

Anyway, the first link above is the first one I've come across about Huobi XRP futures...so I haven't looked at other posts yet anywhere, including this site, so I need time to look further into it to make sure it will be settled fully in XRP. 

Addtional comment: I was hoping legacy investors could also get involved in XRP by using cash as margin for entering into XRP futures (still settled fully in XRP), but the quote I had above states they use digital assets to get into futures, which means, it's not as enticing to legacy investors...this product targets crypto investors instead of legacy investors IMO. 

Edited March 27, 2019 by enrique11
additional comments, highlight part of quote