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Kraken Becomes First Crypto Exchange to Offer Spot and Futures Trading After Major Acquisition

  • Alex Morris
    📰 News

    Jesse Powell believes that the ‘nine-figure’ deal will help boost the exchange’s revenue and lure in more institutional investors


Kraken Becomes First Crypto Exchange to Offer Spot and Futures Trading After Major Acquisition
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According to Fortune, cryptocurrency exchange Kraken has recently acquired major futures trading firm Crypto Facilities. The deal, the financial details of which remain undisclosed, allows the San Francisco-based company to become the very first cryptocurrency trading platform that enables its users to engage in both spot and futures trading.

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A door-opening merger

FCA-approved Crypto Facilities is a professional cryptocurrency exchange that was founded back in 2014. According to Kraken CEO Jesse Powell, the merger allowed them to circumvent years of the regulatory hassle to roll out a derivatives service in Europe.

 Jesse Powell


Notably, Crypto Facilities will continue operating as an independent company. Moreover, all of the employees of the 25-strong startup will keep their jobs (along with the company’s CEO, Timo Schlaefer).

Having an edge over competitors

The deal gives a major competitive advantage to Kraken given that its customers will now have a possibility to trade futures over the clock. Taking such steps is important in a highly competitive market, and Powell claims that more deals will follow in 2019. One of the leading exchanges is on the cusp of completing its massive $100 mln funding round that will put its valuation at $4 bln.
 

Cover image via u.today
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Bitcoin's April 2 Breakout Was Reportedly Orchestrated by One Trader


Bitcoin's April 2 Breakout Was Reportedly Orchestrated by One Trader
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It’s been over two weeks since Bitcoin’s astronomical surge on Apr. 2, but new theories about what might have caused this bullish uptick continue to pop up. According to crypto-oriented analytical firm CoinMetrics, that epic surge was causes by a single trader.

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Mammoth-size trades

CoinMetrics claims that ‘a single committed trader’ concocted a plan to push the BTC price, and he successfully managed to do that by picking the time of the day when the global liquidity is at its lowest level.


(Source: CoinMetrics.io)

(Source: CoinMetrics.io)  

The report also suggests that the trader started to execute his plan on HitBTC (500,000 USDT were traded for Bitcoin prior to the price movement). After that, large trades were observed on Coinbase and Bitfinex.      

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Focusing on the future

Meanwhile, as reported by U.Today, another theory states that the rapid price surge was triggered by the expiration of the CME futures contracts and heavy spot and over-the-counter buying. One expert went as far as claiming that a simple April joke about the Securities Exchange Commission (SEC) could do the trick.

While no one is quite sure about what could have triggered the short-living rally, there is even a bigger disconnect when it comes to Bitcoin price predictions. While some share their bullish predictions for 2019, another report states that it could take 22 years for Bitcoin in order to match its current ATH of $20,000.

Cover image via 123rf.com
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