Bakkt is criticized for introducing cash-settled Bitcoin futures
It seems the digital currency community has lost a lot of love for the Bakkt platform. Prior to its launch, the ICE-backed Bitcoin Futures platform was named one of the most positive developments in the digital currency.
Less than three months later, as the platform is busy introducing more Bitcoin derivatives, people have begun naming Bakkt as a potential Bitcoin price suppression tool. The realization that almost all futures contracts traded on the exchange are not settled with real Bitcoin seems to have turned the community away from the once hyped platform.
Bitcoin fans question Bakkt's aspirations
The cash-settled Bitcoin futures contracts from Bakkt have now gone live at ICE Futures Singapore. The new product seems to have had a decent trading day, as more than 1. of the contracts change hands
Over 1, Bakkt Bitcoin (USD) Cash Settled Futures contracts have been traded at ICE Futures Singapore since launching earlier today
– Bakkt (@Bakkt) 9th December
Positive volume volume reports have typically been received with optimism from the digital currency industry. People largely celebrated as the volume on the ICE-backed stock market reached an all-time high of more than Million dollars rose at the end of last month.
It seems, however, that the optimism was short-lived. Traders and analysts like Alex Krüger (@krugermacro) are now criticizing the platform. Krüger said via Twitter that the increasing reported volume of the platform is not a sign that institutions are turning to Bitcoin, as almost none of this is related to daily, physically settled futures contracts.
Rather, the volume represented a growing interest in the cash-settled platform's monthly futures. Because these products do not require actual bitcoin to switch hands, they can be used by traders to lower the price of an asset to press.
It seems that such revelations have severely disconnected the cryptocurrency industry from the Bakkt platform. The above tweet from Bakkt shows that trading in futures contracts in Singapore was opened with more interest than was the case for the official start of Bakkt in September. Instead of calling this a success, many have criticized Bakkt for his influence on the market.
Some said “1 (fake bitcoins) traded” and ask the traders not to cooperate with the company that has not yet been able to prove that they even own a Bitcoin.
Several Twitter users said cash-settled futures are ruining the market and it was argued that futures contracts are nothing more than a tool to manipulate the price of an asset.
Text Proof: newsbtc
Last update: Tuesday, 10. December 2019