- OKX’s new pre-market futures allow trading early-stage tokens with leverage before public ICOs or TGEs.
- Hamster Kombat’s HMSTR token debuts on OKX amid regulatory scrutiny from Russia and Iran.
- OKX will exit Nigeria by mid-August and suspend crypto service license application in Hong Kong.
OKX, a worldwide cryptocurrency exchange, has launched pre-market futures for early-stage tokens. This new tool enables traders to enter into futures contracts with leverage for tokens before making them publicly available through sales such as initial coin offers (ICOs) or token generation events (TGEs).
The exchange intends to aid in the price discovery process for these tokens, improving its users’ trading experiences.
The first token featured in this new offering is the HMSTR token from Hamster Kombat. Traders can now gain exposure to HMSTR through these futures without holding the actual token. The pre-market futures will be settled at a predetermined price on the delivery date, as outlined by OKX.
Hamster Kombat Gains Attention Amid Controversy
Hamster Kombat, the Telegram mini-app game, has quickly risen to fame, amassing 142 million users in just 77 days. The game involves tapping to earn virtual coins, has been described as a “clicker” sensation, and has significantly contributed to interest in blockchain technology.
However, its rapid popularity has not come without scrutiny. Regulators in Russia have raised concerns, suggesting that the game might be operating as a “pyramid scheme.” Furthermore, in Iran, military officials have criticized the game, labeling it a form of “soft war.”
Despite these controversies, OKX has decided to include the HMSTR token in its pre-market futures, which does not guarantee a future listing for spot trading. The decision reflects OKX’s commitment to providing a diverse range of trading opportunities for its clients.
Enhancements Over Traditional Pre-Market Offerings
OKX’s pre-market futures aim to improve upon traditional peer-to-peer (P2P) pre-market products by offering better liquidity and lower fees. According to Lennix Lai, OKX’s Global Chief Commercial Officer, this innovation leverages the company’s robust risk management system and extensive trading experience to offer a superior trading platform for early-stage tokens.
This new product line is expected to open up more avenues for traders to participate in the early stages of token launches, capitalizing on price movements before these tokens are available to the broader public. It also promises a cost-effective trading experience compared to other major P2P pre-market platforms.
Regulatory Changes and Market Adjustments
Due to regulatory changes, OKX has significantly adjusted its operations in specific markets in a separate development. The exchange has announced the discontinuation of its services in Nigeria, with a complete shutdown scheduled for mid-August.
Nigerian users have been informed that they can only access their accounts to withdraw funds or close positions past the cutoff date.
Furthermore, OKX has suspended its license application for centralized crypto trading services in Hong Kong. This decision comes amidst plans to cease such services for Hong Kong residents, indicating a strategic pivot in response to evolving regulatory landscapes. The withdrawal of the VASP license application marks a notable shift in OKX’s approach to compliance and market participation in the region.
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