Unchained Unconfirmed: Why the FTX.US/LedgerX Deal Indicates Crypto M&A Might Start Booming - Ep.269
Sep 3, 2021
Steven Ehrlich, director of research for digital assets at Forbes, discusses the FTX.US acquisition of the derivatives platform LedgerX, revealing its significance in the crypto landscape. He predicts a surge in crypto mergers and acquisitions, while also exploring the regulatory hurdles facing FTX and the potential for derivatives-focused ETFs. Additionally, he shares insights on how a woman in Afghanistan is using crypto education to empower local girls, illustrating the transformative potential of technology even in challenging environments.
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FTX.US Gains Competitive Edge
- FTX.US acquired LedgerX, a CFTC-licensed platform, to offer crypto derivatives like Bitcoin and Ether contracts.
- This move gives FTX.US a competitive edge in the US market, where other major exchanges lack this capability.
FTX.US and the Derivatives Landscape
- FTX.US will have a relatively clear path to offer crypto derivatives in the US, unlike other exchanges like Coinbase or Kraken.
- However, they need to compete with CME, a major player in the institutional derivatives space.
Crypto Derivatives: A Word of Caution
- Be cautious when trading crypto derivatives due to the market's volatility and the risk of cascading liquidations.
- These instruments should be used for hedging and lowering volatility, not for reckless speculation.