BIT Exchange Rolls Out Filecoin Options Trading Amid SEC Securities Classification

BIT, a leading cryptocurrency exchange based in Dubai and specializing in options trading, has rolled out Filecoin (FIL) options trading. In collaboration with trusted market makers Coinhako and Orbit Markets, the exchange aims to enhance pricing accuracy, lower transaction costs, and reduce counterparty risk.

This decision aligns with BIT’s strategy to meet the market demand for FIL options, as expressed by Lion, the Managing Partner of BIT.

Filecoin Options Open for Trading

The introduction of FIL options trading on BIT’s platform addresses several key issues. It brings more transparency to pricing, providing traders and investors with real-time, standardized pricing data.

Furthermore, it mitigates counterparty risk and lowers transaction costs, often associated with over-the-counter (OTC) platforms where a substantial volume of altcoin options is traded.

According to Lion,

“We’ve received increasing interest from institutional investors, miners and hedge funds to offer FIL options. This launch is a direct response to the growing demand within the Filecoin community and the broader crypto market.”

Filecoin is an open-source cloud storage marketplace and protocol. Its diverse ecosystem extends across various sectors, including public data, healthcare, gaming, web publishing, NFTs, verifiable storage, and decentralized identity.

SEC Not a Fan of FIL

However, this announcement comes amid the US Securities and Exchange Commission’s (SEC) claim that FIL is a security. In response, Protocol Labs, the open-source R&D lab behind Filecoin, has defended the token, asserting that FIL does not meet the definition of a security.

This defense comes in the wake of the SEC’s lawsuits against Binance and Coinbase. These regulatory battles could have far-reaching implications for the market’s future for tokens like FIL.

Despite the SEC’s classification, the Filecoin token has experienced a rollercoaster year. Its price has dropped by over 15% following the SEC’s lawsuits. FIL is currently trading near a 2023 low of $3.21.

Nevertheless, Protocol Labs remains committed to its mission, partnering with a16z crypto to support the Crypto Startup School (CSS) accelerator program, aiding web3 startups through mentorship and resources.

The future of Filecoin and its role in the arena of decentralized storage is still uncertain. However, it’s unlikely to reclaim the hype it captured upon launch.