After delisting FTX, Binance entered the options market, why did it choose a different "American option"?

特邀专栏作者

2020-04-07 20:13 (UTC+8)

This article is about 907 words, reading the full article takes about 2 minutes

Binance has been very eye-catching recently. It has removed the FTX tokens it invested in, and is preparing to launch new businesses such as options and mining pools. What's different about options on Binance?

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On April 3, Binance’s official Twitter released a message, revealing a screenshot of TestFlight, which shows “supports option trading”. Later, Binance CEO Changpeng Zhao also reposted the tweet.

Binance stated in the introduction that “Compared to traditional option products, Binance Options simplifies the options trading process to enhance the trading experience. Binance Options is an American option. It allows traders to exercise their rights at any time before the expiration date. Compared to traditional options, Binance Options have a shorter time frame of expiry, ranging from 10 minutes to 1 day.”

The biggest difference from other exchanges in the currency circle is that Binance is an American option; Deribit, FTX, and OKEX are all European options. European options can only be exercised on the expiration date, while American options can be exercised at any time.

Binance’s American options mainly have the following two characteristics:

1: Denominated in USDT instead of BTC, reducing the risk of BTC and ETH standard fluctuations. This is also in line with the fact that the perpetual contracts launched by Binance are based on USDT.

2: American options can be exercised at any time, and the playability is even more.

Interestingly, after Binance released options, FTX Exchange CEO Sam liked this tweet.

This person said that it would be quite funny if Binance launched such a fraudulent two-way option (actually an American option) after delisting FTX’s leveraged tokens.

This guy thinks that there is fraud because he doesn’t know much about options, or he thinks that options that expire in 10 minutes, 30 minutes, 1 hour, and 24 hours are more risky to users because the time is too short. The user's counterparty may be Binance. You must know that Binance announced its strategic investment in the FTX exchange in December 2019. Later, FTX CEO Sam also expressed his recent opinion on Binance’s delisting of FTX leveraged tokens. Simply put, “some people win, some people lose, the losers are sad, and the winners are quiet.” The reason for Binance is to protect users.

Binance and CZ have such personalities. This kind of personality does not even take commercial interests into account, which seems quite different. Earlier, Binance delisted BSV, and then OK Star Xu immediately reached strategic cooperation with BSV and CSW. This time, the FTX I invested in was removed from the shelves, and Matcha MXC and BITMAX went online immediately and promoted it.

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