- Hong Kong exchange Bitfinex recently invested in a new derivatives exchange during its funding round.
- The exchange, known as LN Markets, is based on Bitcoin’s Lightning Network.
- Bitfinex is a great supporter of the LN, and it was pleased to show its support through this investment.
According to new reports, a major Hong Kong crypto exchange, Bitfinex, recently invested a significant amount into a new derivatives exchange based on Bitcoin’s Lightning Network. The platform in question is known as LN Markets, which recently closed a funding round during which Bitfinex’s investment had arrived.
Who is LN Markets?
LN Markets is a young platform that only saw the launch in March of this year. However, it attracted a lot of attention since then, and it already reached almost $10 million in aggregate traded volume. The platform has more than 100 channels that connect it to the exchange.
It was built in a way that would allow it to send funds quickly and cheaply, just like the Lightning Network (LN) itself. Basically, it connects traders to Bitcoin derivatives markets by sending the users’ funds via the LN.
Meanwhile, the excahnge offers trading with leverage, going up to 50x. And, due to its tight connection to the Lightning Network, users can use any LN wallet to trade directly.
Bitfinex invested to show its support of the LN
While it is expected that Bitfinex’s investment is certainly noteworthy, the LN Markets officials refused to disclose the amount they received.
The amount was kept by Bitfinex’s officials, as well. Even so, the exchange’s CTO, Paolo Ardoino, did comment on the move. He said that this is Bitfinex’s first public investment. As such, it also serves to show the exchange’s support for the LN.
Bitfinex has always been a strong supporter of LN technology, and the exchange appreciates the opportunity to show its support of it through this investment.
Meanwhile, LN Markets’ trader and a known BTC developer, Tobias Hoffmann, stated that the way LN Markets operates as a good model for how exchanges should allow their users to operate with their funds. Especially when it comes to linking the wallets to the exchange.