Poloniex Lists US Election-Based Speculative Products
Cryptocurrency exchange Poloniex has listed a crypto asset that will enable speculators to bet on the outcome of the US Presidential election. The assets, named “TRUMPWIN” and “TRUMPLOSE” are the two recent assets that have been listed for speculation.
Poloniex has referred to them as “new assets to join our Innovation Zone today.” The cryptocurrency exchange’s initiative has come four months (November 2020) before of the US presidential election.
The crypto assets are basically ERC-20 tokens, with value of either $1 or $0 at the time of expiry (when election results are out). A client holding 10 TRUMPWIN tokens will receive $10 in case Trump wins the election.
On the contrary, a speculator holding TRUMPLOSE token will not gain anything in case Trump wins.
The assets allow the public to speculate on the final outcome of the US Presidential election. According to the exchange, the final value of token is decided as follows:
“The market price of TRUMPLOSE should be roughly equal to 1 minus that probability.”
Notably, in May, a comparable product was rolled out by FTX exchange, allowing users to trade futures, with underlying products based on the US election. FTX said “TRUMPWIN and TRUMPLOSE are based on the President 2020 Futures Contracts on FTX.”
Binance is another popular exchange which continues to bring out new products in past few months. The cryptocurrency exchange earlier listed FTX’ assets for leveraged trading before delisting them and including its own name sake branded leverage assets.