The FTX Cryptocurrency Derivatives Exchange has listed new futures contracts on its platform. The contract is called “OLY2021” and essentially allows investors to bet on the possibility of the 2021 Tokyo Olympics this year.
The requirement for creating the futures contract is a high level of uncertainty, and that uncertainty revolves around the possibility of this year’s Olympics.
This uncertainty is, of course, due to the ongoing COVID-19 pandemic, especially given the surge in coronavirus cases reported in Japan more than a month ago.
FTX Terms on Olympic 2021 contract
The terms of the futures contract provide that if the 2021 Olympics are held, the OLY2021 token will expire at a price of $1. Conversely, if the Olympics are canceled or postponed for the rest of the year, the value is $0.
FTX defines that by the time the official Olympic results page is updated to reflect at least 15 medals for participants in all sports participating in the Tokyo Olympic Games.
FTX did not mention the location clause in the official terms. The Olympics are almost certain not to be relocated as a lot of precautions are required for the game to go smoothly.
OLY2021 Futures Contract Chart. Source: FTX
FTX CEO’s Addition Project on the Exchange
Chief Executive Officer (CEO) of FTX, Sam Bankman-Fried. Also called “SBF”. In addition to his FTX position, he was CEO of Alameda Research and led the DeFi Project, a decentralized financial derivatives exchange project.
SBF was recently added to Forbes’ 30-under-30 list in December 2020. In February, he was voted second in The Richest Man In Crypto report. His net worth is reportedly at $4.5 billion, according to Brian Armstrong, CEO of Coinbase.
In a similar product announcement earlier this month, FTX listed Trump’s 2024 futures contract. The contract was initiated under the share code “TRUMP2024” and mainly read: “If Donald Trump wins the US election in 2024, the price for TRUMP2024 will drop to $1.”
In another innovative version, FTX announced in November of last year that it would introduce token trading for US stocks. This allows FTX users to trade stocks like Amazon, Facebook, Netflix, and other popular technology stocks.
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