The huge potential of the derivatives market is beyond doubt. Several market experts have even predicted that by the end of 2023, the scale of the crypto derivatives market will reach 20 times the size of the spot market. This year, more and more spot exchanges have involved in the derivatives trading. At the same time, new exchanges join the battle with new gameplay and new models. Today we are going to talk about the recently popular NGKEX, a derivatives exchange that just went online in March this year.
Supported by first-class market makers, the NGKEX has been launched in March and has entered the secondary; let alone the specific trading business, when we visit the NGKEX official website, we see an interesting place. Unlike ordinary exchanges that only count the trading volume on the platform, the one-click purchase of NGKEX provides a variety of convenient channels, such as WeChat, Alipay, and bank cards. It was launched in March, with a transaction volume exceeding 100 million. Why is the NGKEX so popular? Perhaps we can explore the answer through the UICI behind the NGKEX. According to official website, the UICI currently manages more than US$2 billion in digital assets, with a daily trading volume of US$600 to 1 billion, providing liquidity and market-making services for the world’s top 35 exchanges.
In the project white paper, the UICI mentioned its mission in building the NGKEX:
“In the past year and a half, as one of the world’s largest token derivatives trading market makers, we found that the existing top contract exchanges had many problems during the trading process. We have reported countless white papers and feedbacks to these exchanges. However, the problem still exists and has not been improved. Therefore, instead of expecting the existing top exchanges to adopt our feedback and improve their products and services, it is better to build a system that can directly solve these problems and change the status quo of the market. Based on this idea, a token derivatives trading platform, NGKEX, which is completely different from the existing exchanges in the market, was born.”
Index contract + stablecoin settlement, the NGKEX launched a new contract game;
The team seems to be very strong and the liquidity is guaranteed, so what about the products of the NGKEX? Similar to general exchanges, the NGKEX also provides contract trading of mainstream currencies. However, looking at the list, we also saw the figure of USDT, which was a little surprised. Thinking about it, USDT faces various problems of manipulation, and the volatility can indeed meet the needs of contract trading. In addition, the NGKEX still provides something different to users.
The first is index contracts. The NGKEX provides a variety of index contracts, including BTC with mainstream currency and token index with top liquidity as the target, as well as UNI, whose market value is in the former middle segment(e.g. ADA) and several currencies with smaller market value. In fact, the naming of the index contract is quite in line with the actual content.