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U.S. Bitcoin Futures Launch stokes fears of manipulation, hacks and glitches
- thisisit 9y agoCboe’s contract uses a price determined in a daily auction at Gemini. Gemini data show its daily auction volumes this year have averaged $1.3 million—a drop in the bucket of global bitcoin trading, which runs into the billions of dollars daily. Gemini’s auction process also has failed to produce a price several times in recent months, on lightly traded weekends or holidays. Gemini says its auction will gain in volume as Cboe’s bitcoin futures contract takes off, and even if the auction is small relative to global trading activity, it offers a useful measure of bitcoin’s price at one point in time each day. “Auction mechanisms are tried and true,” said Gemini President Cameron Winklevoss. So, using an extremely thin market valued in millions to price an asset worth billions. No way that is going to hurt at some point of time.