Physical Bitcoin Futures Contracts Will Become Standard According to Coinfloor Co-Founder

Mark Lamb, the co-founder of Coinfloor believes that physical Bitcoin Futures contracts are a possibility in the near-term.


Mark Lamb, the co-founder of Coinfloor believes that physical Bitcoin Futures contracts are a possibility in the near-term.

While this could be great news for crypto, his comments come at a time when the crypto market is grappling with concerns about manipulation.

The effect of these concerns has prevented the crypto market from benefitting from increased adoption by institutional investors. Recent rejections of Bitcoin ETFs by the U.S SEC are out of such concerns.

However, recent developments within the sector have seen the introduction of several technological solutions that could help to tackle instances of market manipulation.

It’s upon this premise that the Coinfloor co-founder gave his views.

Speaking to Finance Magnates, Mark Lamb, Coinfloor’s Head of Liquidity expounded on efforts by the company aimed at reducing risks associated with market manipulation.

His main thought was that if risks were eliminated, more institutional investors would find it easier and safer to venture into the crypto industry.

A unique approach to BTC Futures

The need to have more big money players enter the crypto space has led to the development of a unique approach.

To instill confidence in investors, Coinfloor uses its unique machine learning technology. The company then augments this with physically delivering the Bitcoin Futures contracts. This is done at the expiry of the futures contracts.

According to Lamb, there are many ways the market can be manipulated. As such, it can be extremely difficult to combat it manually, especially if it is left to the whims of human judgment alone.

He further believes that the development of several tools geared towards finding solutions is key to tackling the problem.

He says that the use of the latest technology tools to monitor specific user patterns, as well as spotting any manipulative behavior is the next frontier.

According to him, this will eventually provide an environment that is safe and secure for institutional traders and investors. These improvements are essential in cultivating trust from the investors.

Trading Technologies has said that cryptocurrency exchange Coinfloor will utilize its machine learning technology to safeguard users against possible market manipulation.

CoinfloorEX, an institutional-grade crypto exchange, will be accessible to all TT users, something that will allow these users to engage with the crypto markets in a secure and reliable environment.

Mark Lamb opines that this approach will attract more mainstream investors, whose entry creates a “more liquid market for institutions to buy and sell these in-demand assets.”

Trading Technologies is a leading software provider and trading platform within the futures market. Utilizing TT and CoinfloorEX makes it possible for investors to trade physically delivered BTC futures.

Only a matter of time before physically delivered crypto futures take root

In his opinion, Mark believes that we are moving towards actual physical delivery of futures contracts.

“We believe that similar to FX, commodities, treasuries and other traditional futures markets, it is only a matter of time before physically delivered cryptocurrency futures become the norm,” he says.

One of the main benefits that can be accrued from this is the potential influx of institutional liquidity into crypto investments.

Bitcoin could be the primary beneficiary with increased trading volumes, a reduction in price volatility, and an accelerated adoption as a currency. What will help this move is the continued growth in trust towards bitcoin and other crypto assets?

It’s possible that as institutions familiarize with the crypto industry, more and more will be done to increase confidence and reduce the risks associated with it.

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