Crypto derivatives exchange platform ByBit is set to airdrop Tether (USDT) tokens to its users following the platform’s recent unveiling of its perpetual contracts for the popular stablecoin. Bybit is one of the participants in Singapore’s growing cryptocurrency derivatives scene as pundits expect more institutional inflows into the derivatives market.
Given the popularity of crypto derivatives trading, regulators in jurisdictions like Japan have come out with robust regulators to govern the market. However, their counterparts in the UK have expressed a desire to ban cryptocurrency derivatives due to perceived risks to retail traders.
ByBit’s USDT Airdrop Campaign
In a press release shared with Blockonomi, the Singapore-based crypto derivatives exchange announced plans for a 1,000 USDT airdrop to its customers. As previously reported by Blockonomi, Bybit launched USDT perpetual contracts in May 2020.
According to the details in the Bybit press release, traders with a wallet balance of at least 0.5 BTC by 10 am (UTC) on April 13, 2020, stand a chance of receiving up to 50 USDT. Customers with wallet balances of at least 50 USDT by 10 am (UTC) on April 16, 2020, could receive coupons of 60 USDT.
The Bybit press statement also revealed that active traders on the platform could receive up to 1,000 USDT depending on their trading volume and wallet size with early-bird registration opening the door for users to claim an additional 20% bonus rewards.
Commenting on the decision to carry out the airdrop campaign, Ben Zhou, CEO of the exchange, remarked:
“The launch of the USDT perpetual contracts on Bybit is a cause for celebration, and this airdrop will incentivize traders to hold the most liquid and trusted stablecoin on the market. Small traders, as well as big players, will be rewarded according to their activity, giving all Bybit users an incentive to get involved.”
Despite multiple legal troubles for Tether and Bitfinex, the popular stablecoin has remained the de facto liquidity provider for most of the crypto trading market. USDT has also been at the center of price manipulation claims with some critics alleging that Tether was being used to control the Bitcoin (BTC) price action.
As part of the airdrop campaign, Bybit says users can sign up to become MVFs (Most Valuable Feedbackers) — providing reviews on the USDT perpetual contracts trading experience on the platform. Members of the MVF club also stand a chance to win 500 USDT in additional bonus rewards.
Evolving Crypto Derivatives Scene
Back in 2019, the explosion of crypto derivatives saw many pundits stating that the market would be the conduit for greater institutional investment in cryptocurrencies. Intercontinental Exchange (ICE) launched Bakkt which after a slow start began to set trading volume records.
CME Bitcoin futures also saw increased appetite from traders despite months of sideways price action in the spot market. Bakkt, on the back of its successful physically-delivered BTC futures, launched an Options product in Singapore.
New entrants like Phemex also entered the scene, promising to deliver novel features as competition in the crypto derivatives scene picked up in 2019. With volume on the rise, the UK’s Financial Conduct Authority revealed that it was looking to ban cryptocurrency derivatives.
In response, organizations like the World Federation of Exchanges declared that the FCA’s move would be a bad idea. The UK government even came out to state that it would not interfere in the FCA’s plan to outlaw cryptocurrency derivatives.
Outside the UK, regulators in Germany and Japan have made efforts to legitimize crypto derivatives with the former officially recognizing them as investment instruments. In Japan, the newly created Financial Instruments and Exchange Act (FIEA) officially creates a regulatory platform for cryptocurrency derivatives trading in the country.