BitMEX's Perpetual Future Pioneer Changes Crypto Trading Forever

Perpetual futures, also known as perps, have become a staple of cryptocurrency trading. However, their origins date back to 2016 when BitMEX launched the first perpetual future. According to Arthur Hayes, CEO of BitMEX at that time, they were a 'scrappy startup' and thought, 'Just get it out there. If it was any good, the market would show us.'

Hayes explained that they wanted to create a product that would allow users to trade cryptocurrencies with leverage, similar to traditional futures contracts. They achieved this by introducing a perpetual future on Bitcoin with an 80x leverage ratio.

The introduction of perpetual futures was a game-changer for cryptocurrency trading. It allowed traders to take positions on the price of Bitcoin and other assets without having to hold the underlying asset themselves. This led to increased liquidity, reduced costs, and greater accessibility to the markets.