What Adding Traditional Futures Markets Means to Digitex

Author: Christina Comben Date: 07 Jan 2019

Plenty of questions arose from the Digitex Roadmap for 2019 and, as promised, we’ll be expanding on those on our blog. We’ll also be providing round-the-clock Community Management support, as always. One of the biggest questions you had about our plans for quarter three was the addition of traditional futures markets--and what they mean for Digitex. Let’s dive more deeply into that here.

Starting out, Digitex Futures will be launching the Beta version with one futures market--Bitcoin. However, you already know it won’t be long before we’ll be adding Ethereum and Litecoin futures markets to that list as well.

Once we’re confident of the exchange and our capability to deliver, we’ll be adding other crypto futures markets according to demand. Perhaps we’ll even put it to a community vote, as Adam was asked in his AMA on Friday! Whichever way we decide to add futures markets it will always be according to demand and whether we see them as a good opportunity for our exchange.

However, what many of you weren’t aware of were our plans to add traditional futures markets such as oil and gold to our exchange later on in 2019. Why do this?

What Adding Traditional Futures Markets Means

Digitex Futures as a young startup wants to be synonymous with a couple of main things--breaking new ground and pushing the envelope. We’re entering the market to provide traders with a never-been-seen-before value proposition and we’re going to continue to improve and innovate

Adam spent too many years as a pit trader watching his daily profits being eaten away by commission fees and dreaming of commission-free trading to not make Digitex the best and boldest exchange out there. Providing traders with a place where they can actually make a daily living out of their passion.

The very nature of Digitex is disruptive. We’re the only futures exchange to remove commission fees from the equation. But once we reach those goals, we want to keep aiming for more. As Adam said in his AMA on Friday:

"Do we want more? Of course, we want more, there are so many things we could do with the digital marketing team, the Dublin development team… all of Asia, South America… There’s so much potential here."

By adding traditional markets to Digitex Futures, we’ll be ramping our exchange up to a whole new level. We’ll be able to shake up traditional futures trading exchanges that charge hefty commission fees and bring the game to their court.

By the end of our hyperbolic quarter three of 2019, we will be the only player in the space to offer zero fees and a plethora of financial futures markets, both crypto and traditional, for traders to try their hands at without paying commissions.

Tapping into a Huge Industry

You probably got from our roadmap, the news of the creation of the Digitex Treasury, and Adam’s AMA, that we plan on being a major exchange. And taking on the biggest in the industry requires continued innovation.

By adding traditional futures to our platform, not only can we provide crypto futures traders with the chance to trade gold, oil, stock indices, and more, but we’ll be gaining a slice of a truly enormous market. Let’s take a look at some of the figures.

We’ve reported before on the Digitex blog that the futures industry is a trillion-dollar one. This could have untold implications on the growth of our exchange.

For example, according to the Futures Industry Association (FIA), the total global futures volume in 2017 reached a massive 25.2 billion contracts. This was a record high and estimated to have a value of around $33.6 trillion combined.

If Digitex were to unlock just a small percentage of this burgeoning market, we could provide tremendous value for our token holders. We could grant our traders the potential to make enormous gains.

Breaking Away from the Traditional Model

Blockchain technology will be cutting out the middleman in just about every industry you can think of as we move into the future. A decade old already, Bitcoin removes the need for a centralized authority between two parties when a transfer of value takes place. Just think about how many industries that can improve efficiencies beyond finance, from the supply chain to the legal field.

For retail traders, the barriers to traditional trading are still relatively high. However, with the appearance of more and more investing sites, the internet has opened up more opportunities than ever before. The need for investors to pay a traditional broker is almost obsolete.

Out of all millennial retail traders worldwide, around 72 percent describe themselves as “self-directed investors.” This means that they don’t rely on a financial advisor, trader, or broker to invest their money or offer advice on things like how to invest in futures. With this new demographic more willing to trade online in new ways, we’ll be tapping into a market with an estimated net worth of $24 trillion by 2020.  

The market for Digitex Futures is potentially huge, unlimited, and growing--and that’s a great market to be in! As we keep saying, the more traders, the higher the demand, the higher the demand, the greater the increase in DGTX price.

We’re coming along at the most opportune time with the right technology to offer self-directed investors a real way of making a daily living trading futures markets of all types. As Adam summed up perfectly:

"The way forward is just looking very, very rosy… I’m really excited by what’s going to go down here this next year, we’ve got a lot of big plans, we’ve got a huge exchange coming up here, a lot of people are going to be using it, a lot of demand for the token, let’s keep at it."

Unlocking the Wealth and Allowing Traders to Make a Living

By moving traditional futures markets to the blockchain, we’ll be allowing everyday traders who had restricted access before to get in on a trillion-dollar market. We’ll be making money and helping you make money as well, unlocking the value that’s traditionally been held in paper contracts for a selective few.

What does it mean adding traditional futures markets to the Digitex exchange? It means continuing the revolution, leading the pack, and being the best version of ourselves that we can be.