Popular cryptocurrency exchange Huobi has announced it’s listing two new cryptocurrency swaps pairs for Crypto.com’s $CRO and for Fantom ($FTM). According to an announcement, both will be using USDT as a margin currency.
Swaps, it’s worth noting, are financial products whose value is based on the value of an underlying asset. These types of financial products are called derivatives, as their price is derived from a primary asset.
Perpetual swaps, which Huobi listed for $CRO and $FTM, are a type of derivative with no expiry date. When traders open a perpetual swap trade they are betting on the future value of an underlying asset – in this case CRO or FTM – and may have to pay funding fees over time.
As with other derivatives, traders can choose to either bet the price of the underlying asset will increase by opening a long position, or that it will decrease by opening a short position. According to CryptoCompare, perpetual swaps use a funding mechanism that ensures convergence of the perpetual price to the spot price.
Notably the price of CRO, the native token of the Crypto..com chain that was created to “build a network of cryptocurrency projects, and develop merchants’ ability to accept crypto as a form of payment,” has exploded this year after Crypto.com announced that one of the most iconic sports arenas in America, Staples Center, would be renamed to “Crypto.com Arena” as a result of a new sponsorship deal estimated to be worth around $700 million.
The cryptocurrency’s price may have also been surging thanks to the launch of Cronos, an EVM-compatible network set to run alongside the Crypto.com chain that aims to scale the DeFi and dApp ecosystem by “providing developers with the ability to instantly port apps from Ethereum and EVM-compatible chains.”
Cronos is set to be the first Cosmos EVM chain built for DeFi, non-fungible tokens (NFTs), and the Metaverse. The native token of the Cronos blockchain is $CRO.
Crypto analytics firm Santiment, as CryptoGlobe reported, has warned in a blog post that CRO has seen a spike in investors driven by fear of missing out (FOMO) from social media, which could be a bearish indicator for the cryptocurrency.
The firm wrote that the FOMO is “real as seen from the massive spikes in social volume over this month as compared to the previous months.” The cryptocurrency topped its “Social Trends” ranking more than once, which historically Santiment says means it’s “highly likely that the local top is in.”
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