Derivatives Market Heats Up as GlobeDX Closes $18M Private Round

Competition between derivatives exchanges, which was already fierce, has gotten hotter with the arrival of GlobeDX onto the scene. The exchange, which specializes in derivatives, is set to hold its public token sale on April 30 after completing an $18 million private round. Several leading blockchain VCs participated in the round to support Globe’s goal of gaining a foothold in the crypto exchange market.

While there is no shortage of derivatives exchanges already catering to crypto traders, Globe has a few unique features that serve to differentiate it. Chief among these is its Crypto Volatility Index, a perpetual market in which traders can speculate on how much the market will move, be it up or down, within a given time period. A focus on liquidity and UX are also top of Globe’s feature list, all of which are powered by its native GDT token.

Blockchain VCs Dig Deep

Y Combinator, Pantera Capital, and Draper Dragon, the latter the investment firm of blockchain figurehead Timothy Draper, led the round that saw $18 million raised. Other VCs that made the list include Republic Crypto, OKEx, CMT Digital, and Wave Financial. These firms are betting on GlobeDX making a name for itself and drawing liquidity and users away from the derivatives market leaders such as Bybit, Huobi, and Binance. 

“Trading defi perpetuals on an exchange built by trad-fi veterans will be a whole new experience for crypto traders,” ventured GlobeDX CEO James West. “We’re working closely with our investors and strategic partners to bring innovative products for our traders on Globe,” he added.

The London-headquartered exchange is catering to traders who like their leverage high and their perpetual products innovatively designed. In addition to letting traders go long and short on markets for BTC, ETH, and various defi tokens, Globe allows holders of its GDT token to win BTC through a lottery system. Users receive tickets for completing certain tasks, with tickets drawn fortnightly. 40% of users who enter are guaranteed a win of some kind.

A Binance Contender Emerges

While there are many derivatives exchanges that GlobeDX is going up against, its team is particularly keen on catching Binance Futures. As the world’s largest spot and futures exchange, Binance’s shadow looms over the crypto landscape. Having attracted greater participation in its presale than Binance did in 2017, and onboarded more than 200 partners already, Globe is well placed to achieve this goal. 

It will take years to match the volume and liquidity that Binance boasts, but Globe isn’t short of ambition. And with an $18 million warchest to bootstrap its early efforts, all the tools are in place for a successful debut year. 

On April 30, the public sale for the GDT token will be held, giving traders an opportunity to acquire Globe’s native utility token. With BNB the best performing exchange token of all time, it will be interesting to see how GlobeDX fares in this respect as the platform grows. Initially, the GDT token will grant a discount on trading fees, and there is the promise of assigning control to the community using GDT as a mechanism for orchestrating governance. A dual token sale, held on Ignition and SuperFarm’s launchpad, will enable early adopters to claim their share of the spoils before putting crypto’s newest derivatives exchange through its paces.

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