FTX announces the launch of TRUMP
Recently, the crypto-derivative exchange, FTX, launched the Bitcoin options contracts and has just announced the launch of a new futures merchant product called TRUMP.
The future of TRUMP
FTX, the crypto-derivative exchange, announced the launch of a new futures trading product called "TRUMP". The new product allows users to bet on the re-election of President Trump in 2020. An FTX representative explained: "TRUMP is a futures contract that beats USD 1 if Trump wins the 2020 presidential general election and USD 0 otherwise. ... So far, most of the volume has been negotiated with the offer, which means that traders think Trump is likely to win re-election."
On February 6, FTX explained in a blog post that TRUMP will allow users to bet on President Trump's likelihood of victory in the US elections that will take place in November 2020. The contract price will be USD 0 or USD 1: if President Trump loses the elections, the asset will cease to have value and, conversely, if President Trump wins the elections, the Trump asset will automatically be worth USD 1. Currently TRUMP is quoted around USD 0.62, which means that those who invested in a TRUMP contract will obtain a 42% return on their investment.
In the blog post, FTX explains: "Theoretically, ignoring interest rates, fees, inefficiency, differential, etc., the price of a TRUMP contract should be equal to the likelihood that Trump will win re-election. So, if you think there is a 52% chance that Trump will win, then TRUMP should be negotiated at USD 0.52."