U.S.-regulated bitcoin derivatives exchange Ledger X has been saying for the last few weeks that it will be the first crypto exchange to allow investors to purchase derivatives that “pay out with bitcoins.” Unfortunately, this little fantasy won’t be turned into a reality just yet.
Why Did Ledger X Suddenly Fall Behind?
The company has taken to several crypto news sites and social media pages to explain that it would be the first clearing house and cryptocurrency exchange to permit such trades in the future. Recently, however, Ledger X has had to backtrack on these statements, claiming that its explanations were “premature” and that its derivatives won’t be ready on time.
Such derivatives were designed to bring more retail players into the crypto market. While the project is still possible, delays have come about, and some enthusiasts aren’t taking the news too well.
Even more drastic is how Ledger X initially reacted. Recently, chief executive Paul Chou took to Twitter to hit back at the U.S. Commodity Futures Trading Commission (CFTC). His tweets, laden with foul language and notably derogatory words, claimed that the organization was “breaking the law” and preventing Ledger X from fulfilling duties it had not only promised its customers, but was legally allowed to execute.
Chou later retracted some of these statements after the organization got in touch and requested that he “censor” some of his comments. While Chou deleted some of the tweets, he also expressed his first amendment rights, saying that while his messages may have been rough, they hadn’t crossed any lines. This later led to further controversy after the company’s public relations representative issued a tweet saying that Chou was no longer involved with Ledger X.
CFTC spokesman Michael Short responded to the situation, commenting:
Ledger X requested that the CFTC amend their order of registration as a DCO to also include clearing futures listed on its DCM. That process has not yet been completed.
The good news is that the fight between both organizations hasn’t resulted in any negative press for bitcoin. In fact, the currency is doing quite well at press time, having spiked beyond $10,850 during the early morning hours of Saturday, August 3. This price is a $300+ spike just from yesterday, which saw bitcoin trading at roughly $10,500.
Bitcoin Remains Largely Unaffected
Recently, the currency had hit new lows of $9,500 and $9,400, leading many enthusiasts to wonder if perhaps the bull run that began in early April was coming to an end.
Ledger X presently focuses primarily on institutional investors and monitors approximately $10 million in assets. The derivatives would have brought more retail customers to Ledger X’s playing field. It is presently open to crypto investors living in both the U.S. and Singapore.