What is CoinFLEX? All You Need to Know About FLEX

IntermediateMar 16, 2023
CoinFLEX is a cryptocurrency derivatives trading platform that offers a range of trading products, including spot, futures, perpetual, spreads, and repos, and unique features like AMM+.
What is CoinFLEX? All You Need to Know About FLEX

CoinFLEX is a cryptocurrency exchange and derivatives trading platform that specializes in physically delivered futures contracts for Bitcoin and other cryptocurrencies. It was launched in 2019 with the goal of providing a platform that meets the needs of professional traders, offering high liquidity and a wide range of trading options. CoinFLEX is operated by CoinfloorEX, a subsidiary of Coinfloor, one of the oldest and most established cryptocurrency exchanges in the UK.

What is CoinFLEX?

Source: CoinFLEX

CoinFLEX is a leading cryptocurrency derivatives exchange that offers trading in Bitcoin and other cryptocurrencies. It was launched in 2019 by a team of traders and developers, including Mark Lamb and Sudhu Arumugam, who previously worked at the Chicago Mercantile Exchange and JP Morgan, respectively. The platform is designed to cater to professional traders and institutions, providing them with a range of sophisticated trading tools and products.

Unlike other cryptocurrency exchanges that offer spot trading, CoinFLEX specializes in futures and perpetual contracts. Futures contracts are agreements to buy or sell a certain asset at a specified price and time in the future. Perpetual contracts are similar, but they have no expiration date. Instead, they are designed to mimic the spot market, allowing traders to hold positions for as long as they like.

CoinFLEX has gained popularity among traders due to its unique features such as physically delivered Bitcoin futures contracts, which means that traders receive actual Bitcoin instead of cash at the expiration of the contract. Additionally, CoinFLEX offers a high leverage ratio of up to 100x on Bitcoin futures, providing traders with the ability to amplify their profits.

The exchange has also gained traction due to its use of the FLEX token, which is an ERC-20 token that provides users with a range of benefits, such as discounted trading fees and voting rights on certain platform decisions. The token is also used as collateral for futures trading, and users can earn interest on their FLEX holdings by participating in the platform’s staking program.

History of CoinFLEX (FLEX)

CoinFLEX was founded in 2019 by a team of experienced traders and developers who recognized the need for a dedicated cryptocurrency futures exchange. The team included Mark Lamb, a former trader at the Chicago Mercantile Exchange, and Sudhu Arumugam, who previously worked as the head of blockchain and cryptocurrency at JP Morgan.

The exchange was initially launched as a joint venture between Trading Technologies International, a leading provider of trading software, and Coinfloor, one of the oldest cryptocurrency exchanges in the UK. Coinfloor contributed its experience in running a successful exchange, while Trading Technologies provided the technology infrastructure and connectivity to global trading networks.

In March 2020, CoinFLEX announced that it had secured $10 million in funding from prominent investors, including Polychain Capital and Digital Currency Group. The funds were used to expand the platform’s trading products, including the introduction of the flexUSD stablecoin and the launch of a mobile trading app.

In October 2020, CoinFLEX made headlines by introducing physically delivered Bitcoin futures contracts, which were settled in actual Bitcoin instead of cash. The move was seen as a significant step forward for the cryptocurrency industry, as it provided traders with a way to hedge their exposure to Bitcoin without having to convert their holdings to cash.

Since its launch, CoinFLEX has continued to grow and expand its offerings, attracting a global user base of professional traders and institutions. The exchange has also been recognized for its innovative use of the FLEX token, which provides users with various benefits and has become a popular asset for staking and earning interest. Overall, CoinFLEX’s history reflects its commitment to providing a professional-grade trading platform for the rapidly-evolving world of cryptocurrencies.

How does CoinFLEX work?

CoinFLEX operates as a centralized cryptocurrency derivatives exchange, where traders can buy and sell Bitcoin futures and other cryptocurrency-based derivatives. The exchange offers a range of trading products, including perpetual contracts, futures contracts, and spot markets for Bitcoin and other cryptocurrencies.

CoinFLEX’s trading engine is designed to provide fast and reliable execution of trades, with an average latency of fewer than 20 milliseconds. The exchange offers a range of sophisticated trading tools, including a customizable user interface, advanced charting tools, and trading APIs for algorithmic trading.

CoinFLEX offers a range of five different trading products, each catering to different types of traders and their specific needs. These products include spot trading, perpetual contracts, futures contracts, spread trading, and repo markets.

Spot trading on CoinFLEX allows users to buy and sell cryptocurrencies at the current market price. This is the most straightforward form of trading and is typically used by traders looking to hold a position for a short period. The exchange offers spot markets for Bitcoin, Ethereum, and other cryptocurrencies.

Perpetual contracts are a type of derivative that allows traders to hold a position indefinitely, without an expiration date. These contracts closely track the underlying asset’s price and are settled in the same cryptocurrency as the collateral. CoinFLEX offers perpetual contracts for Bitcoin, Ethereum, and other cryptocurrencies.

Futures contracts are similar to perpetual contracts but have a fixed expiration date and settlement price. Futures contracts can be traded with leverage, allowing traders to amplify their profits but also increasing their risk exposure. CoinFLEX offers futures contracts for Bitcoin, Ethereum, and other cryptocurrencies.

Spread trading on CoinFLEX involves trading the price difference between two different futures contracts. This type of trading can be used to profit from changes in the relative prices of different cryptocurrencies or to hedge against market volatility. The exchange offers spread trading for Bitcoin, Ethereum, and other cryptocurrencies.

Repo markets on CoinFLEX are used for short-term borrowing and lending of cryptocurrencies. Traders can use repo markets to borrow cryptocurrencies at a low-interest rate or to earn interest by lending out their holdings. The exchange offers repo markets for Bitcoin, Ethereum, and other cryptocurrencies.

CoinFLEX’s Main Features: AMM+ and FLEXDAO


Source: CoinFLEX

CoinFLEX’s AMM+ is a new automated market-making system that combines the benefits of both centralized and decentralized exchanges. The AMM+ system provides liquidity for the exchange’s trading pairs while also allowing traders to interact with the order book and place limit orders.

Unlike traditional automated market makers used by decentralized exchanges, CoinFLEX’s AMM+ uses a centralized order book to provide deep liquidity for its trading pairs. This ensures that traders can always execute their orders at the current market price, even during periods of high volatility.

At the same time, the AMM+ system uses an automated pricing algorithm that adjusts the price of each trading pair based on supply and demand, ensuring that the market remains efficient and free from price manipulation. This algorithm also enables traders to interact with the order book and place limit orders, providing them with greater flexibility and control over their trades.

In addition, CoinFLEX’s AMM+ allows for cross-margining between different trading pairs, reducing the amount of collateral required to open multiple positions. This feature can be handy for traders looking to diversify their portfolios or hedge against market volatility.


Source: FLEXAO - CoinFLEX

FLEXDAO is an innovative governance system that has been implemented by CoinFLEX. The system allows FLEX token holders to have a say in the development and future direction of the platform.

The FLEXDAO system operates on a decentralized autonomous organization (DAO) framework, which means that it is governed by a community of token holders rather than a centralized authority. This ensures that the platform’s development and management are more transparent and democratic, with decisions being made through a decentralized voting process.

FLEXDAO allows token holders to propose and vote on changes to the platform, such as adding new trading pairs, improving the user interface, or implementing new features. This means that the platform can evolve and adapt based on the needs and preferences of its community of users.

FLEXDAO also provides rewards for token holders who actively participate in the platform’s development and growth. These rewards can take the form of reduced trading fees, a share of the platform’s revenue, or other incentives.

What is the FLEX Coin?

Source: FLEX Coin - CoinFLEX

FLEX is the native utility token of the CoinFLEX platform. The token was designed to facilitate trading on the platform and provide various benefits to its holders. FLEX is an ERC-20 token, which means that it runs on the Ethereum blockchain and can be stored in any Ethereum-compatible wallet.

One of the primary uses of the FLEX token is to pay for trading fees on the CoinFLEX platform. By using FLEX to pay for trading fees, users can benefit from reduced fees compared to other payment methods. This can be particularly beneficial for high-volume traders who want to minimize their transaction costs.

Holding FLEX tokens can be used to access exclusive features and benefits on the CoinFLEX platform. For example, FLEX holders can access higher levels of leverage on their trades, which can increase their potential profits. FLEX holders can also participate in the FLEXDAO governance system and receive rewards for actively contributing to the development and growth of the platform.

FLEX tokens can also be staked on the CoinFLEX platform to earn rewards. By staking FLEX, users can earn a share of the platform’s revenue, which is distributed among all stakers on a pro-rata basis. This provides a passive income stream for FLEX holders and can be a useful way to earn additional income from their holdings.

FLEX tokens also have a limited supply, with a maximum of 100 million tokens in circulation. This limited supply can help to increase the value of the token over time, as demand for the token increases and the available supply becomes scarcer.

Source: FLEX Coin - CoinFLEX

FLEX tokens were initially distributed through a private sale and subsequent public sale in 2019, with a total of 40 million tokens sold. The remaining tokens are reserved for platform development, partnerships, and other purposes. The FLEX token is currently listed on several major exchanges, including Binance, BitMax, and KuCoin.

CoinFLEX’s Partnerships

CoinFLEX has formed several strategic partnerships with industry leaders to enhance its platform’s functionality and reach. One of its most significant partnerships is with Polkadot, a leading blockchain network that provides interoperability between different blockchain networks. CoinFLEX has built a bridge between its platform and the Polkadot network, allowing for greater access to trading opportunities and enabling the platform to expand its offerings. The partnership with Polkadot also provides CoinFLEX with exposure to a larger community of users and potential investors.

CoinFLEX has also partnered with Circle, a financial technology company that provides a range of blockchain-based services. Through this partnership, CoinFLEX can leverage Circle’s USDC stablecoin as collateral for trading on the platform. This provides users with additional collateral options, increasing the flexibility and accessibility of the trading platform. The partnership with Circle also enhances CoinFLEX’s regulatory compliance, as Circle is a regulated financial institution.

Additionally, CoinFLEX has formed partnerships with other blockchain projects such as Chainlink and Sushiswap. The partnership with Chainlink allows CoinFLEX to access secure and reliable price data for its trading products, enhancing the accuracy and efficiency of the trading process. The partnership with Sushiswap, a decentralized exchange platform, provides CoinFLEX with additional liquidity for its trading products.

Is CoinFLEX (FLEX) a good investment?

CoinFLEX’s unique approach to cryptocurrency derivatives trading and its focus on providing a fair and transparent trading environment make it a project with significant potential in the long term. The platform’s use of smart contracts and its AMM+ technology allow for a more efficient and transparent trading process, which can appeal to both retail and institutional traders.

Furthermore, CoinFLEX’s focus on providing a wide range of trading products, including spot, futures, perpetuals, spreads, and repos, allows it to cater to a broader range of trading strategies and risk appetites. The platform’s ability to offer up to 20x leverage on certain trades can also attract high-volume traders looking to maximize their potential profits.

CoinFLEX’s FLEXDAO governance system provides a unique opportunity for FLEX token holders to participate in the decision-making process for the platform’s future development. This allows for greater transparency and community involvement in the project’s direction, potentially increasing its long-term sustainability.

CoinFLEX’s partnership with industry leaders such as Polkadot and Circle can provide additional exposure and resources to the platform, enhancing its potential for long-term success.

How to own FLEX?

One way to own FLEX is to go through a crypto centralized exchange, so the first step is to create a Gate.io account and complete the KYC process. Once you have added funds to your account, check out the steps to buy FLEX on the spot or derivatives market.

Useful References

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Author: Gabriel
Translator: cedar
Reviewer(s): Edward
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