Polkadot token 'DOT' valued at $75 pre-launch in futures offering

16 Jul, 2019 | Updated: 16 Jul, 2019
by Manshi Soneji Mamtora
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Polkadot token 'DOT' valued at $75 pre-launch in futures offering

Say hello to IFO! CoinFLEX exchange is set to roll out the first-ever future offering this week called 'DOT'. It would require trading in FLEX, the CoinFLEX exchange token. 

ICO to IEO to IFO... where are we heading?

Initial Future Offering is a thing now. The cryptocurrency futures exchange CoinFLEX, will be the first to introduce us to Initial Future Offering or IFO this week. 

CoinFLEX CEO Mark Lamb told Coindesk, “This is the first time we’ve made a futures market for a coin that doesn’t actually exist yet, it’s a determiner of the price before the asset exists.” CoinFLEX was launched in April with four futures contracts including Bitcoin and Ether. It is backed by Polychain Capital and investor Roger Ver. 

The exchange also launched its own token called FLEX earlier this month. The PolkaDOT IFO will require participants to buy FLEX, the native token. Modeled after the Binance initial exchange offering model, up to 300 FLEX token holders will have access to 'discount' contracts priced at $75 per DOT.

A trader told Coindesk that prices would need to eventually exceed $100 per token to reach a projected $1.2 billion valuation as established by Polkadot creator and Ethereum co-founder Gavin Wood. 

While CoinFLEX declined to comment on which firms are making the market, they said it includes Asian investors potentially offering millions of dollars worth of DOT tokens. Lam said, ''In order to buy at the presale, you need to lock up a thousand FLEX. We don’t know when they [IFO contracts] expire, because we don’t know when mainnet is going to launch.” Lamb also asserted that the exchange plans to offer BNB and Tron futures later this summer.

The head of business development, Emmanuel Alamu, told CoinDesk, ''IFOs are an innovative way for the market to develop price discovery and act as a barometer on the progress of these blockchains. We can handle dual margining and hence, enact rules that ensure both sides of an IFO trade will deliver their respective side of the digital asset.''

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