Coinflex is a cryptocurrency exchange that provides the service of Bitcoin futures’ physical delivery. The exchange doesn’t deal with fiat money and all transactions are performed in cryptocurrencies. The platform with low fees offers BTC and stablecoin trading with up to 20x leverage that makes the exchange stand apart from its competitors.
The company standing behind the platform is named Liquidity Technologies Ltd. It launched the platform in 2019 on Seychelles, and its main administrative office is located in Mahe. However, it’s operating from Hong Kong because it perfectly suits the main goal of the company to develop the Asian trading market where it targets two categories of customers: retail customers and commercial traders.
The team of the company admits the problem that exists in the cryptocurrency sphere. It’s the lack of high-quality products for pro-level traders. The platform tries to solve it by offering advanced products to institutional and professional investors. Some products of this kind have existed in the market before, but they were rather primitive. With the growth of trading Bitcoin derivatives, the need for new products became evident, so Coinflex tries to satisfy this demand.
Physically delivered crypto derivatives are the feature that makes the platform unique. Such contracts can be profitable for both commercial and retail clients. Cryptocurrency mining firms benefit from these deals as well. Commercial hedgers are good for miners, global proprietary trading firms, and OTC derivatives trading desks.
Physically delivered cryptocurrency futures enable the deals without cash price settlement risk and help to remove price manipulation. The platform excludes the in-house trading option, consequently, there is no in-house desk. This removes competition with users of the platform and contributes to the transparency of the platform.
Conflex offers up to 20x leverage for margin traders. The platform features powerful API that can process up to 200 API orders per second employing Rest API and Streaming Websocket API. Coinflex is not just a trading service as it has its own cryptocurrency named FLEX which is a utility coin on the platform. Unlike most tokens, this coin is given to the traders free of charge to increase their loyalty. Using the FLEX coin, the traders can reduce the trading fees considerably.
The futures concept acquired a wider meaning on Coinflex that launched ‘initial futures opening’ (IFO). This service offers token projects which are fundraised through private sales. The participants can take positions in either way. Those who believe in the success of the project, can purchase futures. If a person thinks that failure is expected, short the futures. Polkadot’s DOT token became the first IFO traded on Coinflex.
The exchange also launched a special service called Designated Market Making (DMM) program. Those who take part in it are awarded with the FLEXMaker Score. The participants should be proficient in the market expertise and meet certain requirements, for instance, the candidate should be available on the market 70% of the time. The service rewards those who show tighter markets. The program helps the platform to increase liquidity and improve market adoption for cryptocurrencies.
The website offers numerous features for professional or advanced traders such as IEO Flex Coin and the IFO feature enabling trading on illiquid assets. The detailed FAQ will let you know about all the services offered to the customers. Users can also apply to the customer support to clarify the details via email or the Telegram chat. The company works over the education of its clients regularly posting materials on social media channels.
On Coinflex, both makers and takers are charged 0.03% regardless of the trading amount. Deposits with BTC or USDT are available with no fee. The withdrawal fee is also 0.03%.
Coinflex UI and security
The user interface of the platform is rather sophisticated so it can not be clear enough for beginning users as the exchange caters to the needs of experienced traders first of all. Though the website doesn’t have KYC requirements, it’s very important to provide authentic information about the place of living and other personal details, otherwise, your account can be banned.
The platform features a high level of security that is proved by the fact that at the time of writing, it had never had any security incidents. Taking into account the professionalism of its key figures and rich experience accumulated by them in Coinfloor, they have learned to run the crypto exchange securely. The company has made the decision to store 99% of assets in cold wallets. Secured hot wallets only keep the funds that are necessary for daily trading operations.
Two-factor authentication is obligatory for all users of the service which helps to exclude unauthorized access to users’ accounts. The platform doesn’t use SMS authentication that is unsafe in the opinion of the Coinflex team.
The team of the company includes professionals with different backgrounds starting from the trading sphere to cryptocurrencies and venture capital. Over 20 different professionals develop the platform at the time of writing.
The management team includes Mark Lamb, CEO, who founded the platform in 2018. Previously, he worked at Coinfloor, which is one of the leaders among cryptocurrency exchanges in the UK. He is professional in such spheres as IT, trading, and marketing having worked in the cryptocurrency area since 2011. Among his other achievements are a couple of Entrepreneurial awards from Hult International Business School, which were granted to him in 2012 and 2013.
It’s also worth noting the background of James Cunningham, CTO, a graduate of the University of Leeds where he studies Mathematics and Computer Science. He has rich experience in the sphere of trading. Prior to the Coinflex appointment, he took positions at high profile investment banks.
The support of such companies as Trading Technologies and Dragonfly contributes to the popularity of the exchange. Also, such personalities as Mike Komaransky and Roger Ver are very helpful for its promotion. It’s also worth mentioning significant investments from Polychain Capital and Digital Currency Group (DCG).