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Kraken announced today the acquisition of Crypto Facilities, the world's first regulated company to offer cryptographic badet futures several years ago. This decision could allow Kraken, currently the 46th exchange of bitcoins in adjusted volume, to reach the top 10.
The acquisition is worth at least 100 million dollars
Kraken's press release does not say exactly how much they pay for Crypto Facilities. They use the term "nine digits", which means at least $ 100 million.
Last year, the company proceeded to a series of dismissals a little confusing. Kraken General Manager Jesse Powell later confirmed that 57 employees had been laid off in Halifax. He also said that the company was still recruiting "aggressively in all areas".
Kraken installs in the space of bitcoins derivatives
Kraken CEO Jesse Powell | Source: World Government Summit / YouTube
From a general point of view, the move could be seen as a response to competitor No. 10, Huobi Global, whose derivatives market, launched in November, has grown rapidly.
Kraken could have created its own derivatives platform. Instead, the Bitcoin exchange has adopted Google's approach: get the best you can and put it to work for your customers.
Supervised by the Financial Conduct Authority of the United Kingdom, Crypto Facilities is a London-based company. The company would stay there, "enjoying the regulatory oversight of the Financial Conduct Authority, one of the most forward-thinking and innovative regulators in the world."
Kraken could integrate customers on its own platform, provided that the acquisition follows the path of other acquisitions such as CAVIRTEX and Coinsetter. Even if the company stays in London, history shows that the most likely future is a Kraken brand product.
Crypto Facilities Announces Revenue Sharing Program
Crypto Facilities recently announced a revenue-sharing program for clients who provide liquidity.
$ 50,000 per week is available for clients trading on the stock market. The revenue share will be calculated weekly, based on customer contributions.
"The RSP measures the contribution of customers to the platform over a week, from 12 UTC every Friday and will initially last 10 weeks. At the end of each interval, each client's revenue share is calculated and paid. "
Derivatives: the next frontier for cryptographic trading?
Source: Shutterstock
Kraken joins Huobi and BitMEX to offer derivatives. As Changpeng Zhao of Binance said the cryptography market could be multiplied by 1,000, "the derivatives market is so much bigger." BitMEX trades close to $ 1 billion a day in trading, making it one of the largest trading periods.
Cryptographic badet prices are derived from spot transactions. As a result, derivatives markets have a limited effect. However, the sentiment expressed on derivatives platforms can certainly influence badet prices. If derivatives value an badet that is several hundred dollars higher or lower than what you see, your vision of that badet will likely change.
The potential for trading derivatives is virtually unlimited, as in the traditional stock market world. Contracts on Bitcoin and its competitors offer great volatility and potential for profit. Combined with leveraged trading, the volume of trading can be extreme.
As such, Kraken could see its profits and its ability to innovate increase considerably.
Featured image of Shutterstock
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