LedgerX Releases Binary Wager on Bitcoin Halving

LedgerX, a United States-based trading and clearing platform, has reportedly launched a new derivative contract that is unique to Bitcoin (BTC). The report was published via a blog post on Feb. 5.

About the LXHC (LedgerX Halving Contract)

The new product is known as the LXHC (LedgerX Halving Contract) which represents a binary option that settles to the roughly estimated time that top digital asset Bitcoin (BTC) halves again.

Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$3,600.32
-0.25%

Bitcoin (BTC) halving can be defined as an event that happens once in every four years. After there is a halving the sum of the new Bitcoin (BTC) created and earned by the miners will have to be split in half. The last time that Bitcoin (BTC) halved was back in 2016. At the time the digital asset reward decreased from about 25 BTC tokens to 12.5 BTC tokens.

According to LedgerX the new derivative contract, “is designed to allow users get a fixed payoff when the next halving block arrives (#630,000) before a specific date and time, should the block be discovered the moment the contract runs out at zero.” Following the current network conditions, it is safe to say that the date of the future Bitcoin (BTC) halving is predicted to take place in May 25, next year.

Binary Options are Similar to Gambling Hence Risk is Involved

Because binary options are typically regarded as gambling because they are basically a “yes or no” bet, the report remarked that there is a fundamental risk involved. LedgerX has been making moves in the Bitcoin sector having launched a series of offerings to streamline the use of the digital asset.

It should be recalled from a January report, that LedgerX launched its Bitcoin price volatility index known as the LXVX (LedgerX Volatility Index).

LedgerX is generally regulated by the United States CFTC. The LedgerX BTC savings product is licensed by the Commodities Future Trading Commission. The project is designed to ensure the simplification of the BTC option trading, allowing “less sophisticated” bulls to premium prices on their holdings.

Crypto Startup Accused of Luring Investor Into Buying $2 Million Worth of MCash Tokens

In other reports, a lawsuit has recently been filed in a U.S district court in NY. According to the report, an investor was lured somewhat maliciously investing about $2 million in the digital currency MCash. The report of the lawsuit was published on February 1.

Based on the lawsuit the plaintiff Lijun Sun was allegedly lured into transferring nearly $2 million to the New-York based investment group called Blue Ocean Capital Group, Inc. in a bid purchase the MCash digital asset.

The materials provided to Sun did not accurately showcase the tokens or the conditions of their purchase. It was only after acquiring the tokens that Sun discovered he would sign a Token Purchase Agreement with another company instead of Blue Ocean Capital which the defendants allegedly did not disclose. The said MCash Tokens were also allegedly unregistered securities making them illegal for U.S markets.

As per court documents, the plaintiff has an option to recede his investment after receiving compensatory damages in the region of $6 million. According to Sun, some of the defendants, acting on behalf of the startup (Blue Ocean Capital), committed a common law fraud and federal securities fraud as a result of their role in the issue.

 

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