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Decentralized exchanges aren’t ready for derivatives

Published 11/20/2021, 02:51 PM
Updated 11/20/2021, 04:40 PM

If the words “derivatives trading” conjures up images of men in suits with disheveled white sleeves rolled up to the elbows and exacerbated expressions on their faces — like something out of The Big Short — then the word decentralized exchanges (DEXs) must conjure up, well, nothing.

There are no offices, no floor traders waving papers and certainly no men in suits. DEXs are managed automatically or semi-automatically with the involvement of platform participants in the process of making mission-critical decisions. DEXs are a bulb of a system that is sprouting groundbreaking opportunities for many, but they are not yet suited for the soil of derivatives trading in this season of the crypto market.

Tom Howard, business development and growth at PowerTrade, is a product geek, founder and angel investor obsessed with reinventing money and finance. As an early investor in cryptocurrencies and founding partner of blockchain investment group Taureon, Tom has seen it all from the booms and busts to the massive challenges users face when trying to use cryptocurrencies as electronic cash. As co-founder of DeFi Nation and formerly co-founder of Mosendo, Tom brings his immense knowledge of decentralization to the crypto derivatives world.

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