FTX launches TRUMPFEB contract as the race for the White House gets more intense

Derivatives exchange FTX has just announced a new type of contract related to the US presidential election called TRUMPFEB.

According to the announcement, the TRUMPFEB contract will expire at $1 if Trump becomes president on February 1, 2021. Otherwise, the TRUMPFEB expiration result will be $0.

However, FTX is allowing users to trade TRUMP contracts so why provide more TRUMFEB? What is the difference between these two contracts?

Specifically, TRUMP will expire when there is an official announcement of the election results, or there is a candidate with enough electoral votes to win.

Meanwhile, TRUMPFEB will not fully mature until February 2021. This means that if users short TRUMPFEB, it will still not fully mature before February next year.

Thus, it is entirely possible that the TRUMP contract will expire before the term of February next year.

Why does FTX offer more TRUMPFEB?

Firstly, because of the rumors surrounding the legal issue, there will be cases where the winner is not announced before February. In 2000, this case took place when Mr. Bush was also appealed the results. vote.

Secondly, this possibility is lower because last week, there was information about election results, vote counting will take a long time because of concerns related to the Covid-19 epidemic as well as mechanical problems of vote counting activities. .

Third, according to US law, by January 17, if the president has not been found, the current vice president will take over this role. But because Mr. Pence is also running for office, this responsibility will likely be handed down to House Speaker, Ms. Pelosi.

According to Coin68