September 30, 2022

FTX Traders Can Now Short the Pandemic, Long the Olympics

2 min read

Traders on the FTX Exchange can now gamble on whether the Tokyo Olympics will take place this summer.

FTX’s Latest Prediction Market

Cryptocurrency derivatives platform FTX Exchange has actually presented a brand-new futures agreement–– OLY2021–– functioning as a prediction market for the likelihood of the Tokyo Olympics happening this year.

The current edition of the summer season Olympics was at first set up for Jul. 24 to Aug. 9, 2020, but needed to be postponed due to the ongoing pandemic. Now the event is arranged for this summer.

However, rising cases of COVID-19 in Japan have actually fuelled speculation that Japan might need to cancel the sporting occasion altogether.

FTX Exchange’s OLY2021 futures contract will trade between $0 and $1 on with leveraged trading up to 100x. The futures contract will end at $1 if the Olympics occur and $0 if they are canceled.

The Hong Kong-based exchange has also specified that it will declare Tokyo Olympics to have actually successfully taken place if, by Aug 9, 2021, a minimum of 15 medals are awarded across any sports.

The contract is presently trading at $0.65, which suggests more traders are wagering that the Olympics will indeed happen.

Source: FTX Exchange
Source: FTX Exchange This is not surprising given the Tokyo Olympics President Yoshiro Mori recently stated the event was more than likely going to happen regardless of the COVID-19 scenario. “& ldquo; We will hold the Olympics, regardless of how the coronavirus looks,” & rdquo; Morti told Reuters.

FTX said the OLY2021 futures contract has a various risk profile compared to Bitcoin due to having “& ldquo; greater opportunities of making large relocations ($0 or $1).”

& rdquo; Around the time of the 2020 U.S. elections, FTX similarity noted ERC20 tokens that let users hypothesize on whether ex-president Donald Trump would win or lose the elections.

Disclosure: The author did not hold crypto discussed in this post at the time of press.