Deribit to Launch Altcoin Options for Solana, Ripple, and Polygon Amid Market Downturn
Cryptocurrency options exchange Deribit is expanding its offerings
Cryptocurrency options exchange Deribit is set to introduce altcoin options contracts for Solana (SOL), Ripple (XRP), and Polygon (MATIC) in January, despite the ongoing crypto market downturn. This move comes as Bitcoin (BTC) and Ethereum (ETH) experience record-low volatility, making these new derivatives potentially more effective as hedges. The decision to delay the launch until January is attributed to the current low volatility in the market.
Boosting market volatility with altcoin options
Luuk Strijers, the CCO of Deribit, expects that the addition of altcoin options contracts will boost market volatility. Richard Galvin of Digital Asset Capital Management highlighted Ethereum’s dwindling popularity due to its low volatility. He also pointed out that altcoins such as SOL, XRP, and MATIC are prone to price swings from smaller trades due to their lower liquidity. However, it is still uncertain whether Deribit will implement measures to counteract potential market manipulation risks associated with its options contracts.
Preparing for the launch and a transition to Dubai
In preparation for the launch of these options contracts, Deribit is planning to transition from Panama to Dubai. This decision follows substantial losses incurred due to Three Arrows Capital’s failure to meet margin requirements.
ETH futures ETFs struggling to attract investors
Meanwhile, ETH futures ETFs have struggled to attract institutional investors. Vetle Lund of K33 Research reported that ETH futures represented only 0.2% of Bitcoin futures ETFs volumes in 2021.
Geopolitical tensions impact crypto prices
On Monday, geopolitical tensions, particularly the Israel/Palestine conflict, exerted downward pressure on crypto prices. Bitcoin has fallen over 1% to the mid-$27,000s, while Ether has dropped over 3% to $1,580 following the Ethereum Foundation’s $2.7 million ETH sale. Concerns are rising about ETH potentially falling below the $1,550 support level and BTC breaching the $28,000 threshold amid its uptrend.
Exploring alternative investment strategies
As traders navigate this volatility, they are increasingly turning to illiquid shitcoin/meme coin markets. Tokens such as Versus ($VS), Only Possible On Ethereum ($OPOE), and Qlindo Realestate ($QLINDO) have demonstrated growth according to DEXTools’ security audit but carry inherent risks. Crypto presales, offering tokens of emerging crypto projects at discounted prices, present an alternative high-risk-high-reward investment strategy that has historically yielded substantial returns.
This article provides insights into Deribit’s plans to launch altcoin options contracts for SOL, XRP, and MATIC. It highlights the potential impact on market volatility and discusses the transition from Panama to Dubai. Additionally, it delves into the struggles of ETH futures ETFs and explores the influence of geopolitical tensions on crypto prices. Traders are also introduced to alternative investment strategies in the volatile market. Please note that this article was generated with the support of AI and reviewed by an editor.
