Social media giant Facebook’s entry into the crypto-industry with its native cryptocurrency, Libra, has been quite controversial. A host of regulatory obligations have delayed its launch. And, despite the fact that Facebook’s crypto-venture was meant to be backed by prominent companies like Visa, Mastercard, PayPal, Spotify and many more, some are already reconsidering their allegiance. Libra has pushed these companies into rethinking their support towards the project, with PayPal recently announcing its withdrawal from the project.
In a recent update, CoinFLEX, a crypto-futures exchange, extended its support towards Facebook’s crypto-project by announcing the launch of a physically-settled futures contracts for Libra. The exchange will be offering derivatives that pay out based on when Facebook’s Libra will be operational. CoinFLEX is planning to hold an Initial Futures Opening [IFO] on 24 October 2019. However, the exchange’s CEO Mark Lamb remains cautious. He elaborated on the current conditions of Libra and said,
“The political backlash has been brutal, and it’s anyone’s guess if Facebook will get this over the line.”
Libra is expected to go live by 30 December 2020 and the initial price of the Libra Futures would be set at 30 cents. This further averages to about a 30% possibility that Libra would go live by its expected time of launch. Further, if Libra doesn’t go live by the anticipated time, investors would acquire nothing while also losing their investments in Libra. On the other hand, if the platform goes live and an investor predicts a certain percentage, the investor would receive a Libra token once the contract is over.
Additionally, Lamb also suggested that Facebook has the capability to compete against the entire global banking system, while pointing out its ability to reach parts that are “under-banked and under-served.” He said,
“If Facebook can act as a crypto on-ramp in these parts of the world, it will change the environment globally for cryptocurrencies.”