Cryptocurrency
Binance buys crypto exchange to bolster development of derivatives platform
The world’s largest digital currency exchange, Binance, has bought crypto exchange JEX for an undisclosed sum. The company announced the move yesterday, saying that it aimed to bolster Binance’s crypto derivatives offerings.
“JEX will join the Binance ecosystem as Binance JEX and focus on further building the cryptoasset derivatives market, providing Binance users with professional services including futures contracts, options and other derivative products,” Binance said in a blog post.
JEX offers its own crypto tokens, which will fall under Binance’s management following the acquisition, although they will continue to be directly run by JEX’s existing foundation.
“In a longer term, JEX tokens will be gradually distributed to all users via marketing activities and community incentives; subsequently, the tokens will be gradually retrieved and burned in various forms including trading commission deductions and so on,” Binance explained.
Binance co-founder Yi He commented on the deal, praising JEX’s team of developers.
“EX has developed solid derivatives product offerings including perpetual contracts and options, which are aligned with Binance’s product roadmaps in the cryptoasset derivatives market,” Yi He said, as quoted by industry website Coindesk.
The news of the acquisition followed Binance’s announcement that the company was launching two test platforms for crypto futures trading. The idea behind the dual launch is to let users vote on which version will become the official platform.
Binance’s own crypto token, the Binance Coin (BNB), has seen strong gains following the announcements. The coin finished the Monday session at $22.77, up from its opening price of $21.57.
In today’s trading, the BNB price stood at $22.57, as of 13:33 BST. The coin has gained 3.1% in the past 24 hours, according to data from digital currency tracker Coinmarketcap. The coin’s total market capitalisation currently stands at just over $3.5 billion.
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