Exchange wagers 1,000 BTC, claiming it knows how much bitcoin will be worth at the end of next month, and invites you to take the bet.
Phemex, a centralized exchange making moves to partially decentralize, is celebrating Bitcoin’s 15th anniversary by placing a big bet: If the bellwether token is worth $50,000 or more on October 31st, the exchange will pay out 1,000 BTC to Phemex Soul Pass holders. To do the easy math, that’s $50 million. Sure, it’s unlikely that BTC’s dollar-denominated value will double in the short term – but would you bet that much that it won’t?
In the more likely scenario that BTC stays in its current $25,000 to $30,000 trading range – where it has been, given a little leeway, since March – Phemex is still giving away 1 BTC. Based on a probability curve, there are different payouts for different price ranges. Nobody knows for sure what the price will actually be, so any participant can cast their vote and win. The more “outlandish” your prediction is, the more you’ll stand to win if it actually comes true!
All you need to do is make an educated guess about the range in which BTC's value will fall on October 31, the 15th anniversary of Satoshi's whitepaper publication. If you have confidence in your ability to accurately assess market conditions and have a knack for prediction, Phemex will keep 1,000 BTC Challenge event open until September 28th.
Token gestures
With such high stakes, it’s natural to wonder: “Is there a catch?” Well, no. Phemex only asks users to mint their Phemex Soul Pass (PSP) to join the event. Obtaining a PSP is straightforward and offers many other benefits to its holders beyond the 1,000 BTC event, so it’s a win-win.
Described previously in this piece, Phemex Soul Pass is a non-transferable authentication token that provides entry to the new and decentralized Phemex Web 3.0 ecosystem and allows users to own a piece of Phemex.
In addition to granting access to the 1,000 BTC event, holding a PSP enables the right to receive airdrops of Phemex’s native PT utility token, currently pre-mining and on the cusp of launching. The pre-mined coin, xPT, will be exchanged one-for-one for PT once the token formally launches, according to the Phemex Web 3.0 whitepaper. That platform token launch is expected to occur in the fourth quarter.
PT is an on-chain, transferable platform utility token for the Phemex exchange. The ERC20 coin can be used to pay for trading, gas, deposit and withdrawal fees on Phemex.
It can also be staked to obtain vePT, wherein “ve” stands for “vote escrow”. The vePT grants decentralized governance power, staking rewards, trading rewards, fee discounts and other benefits associated with participating in the Phemex DAO.
A key leader in the Phemex Web3 effort is Stella Chan, who has recently transitioned to become Phemex’s Chief Operating Officer from her previous role as Chief Marketing Officer. She oversees the development and implementation of strategic plans and policies, day-to-day business operations and is also responsible for leading and mentoring other executives and managers. Her grand vision for the future of the crypto industry is reflected in the development of Phemexia.
“We aim to lead the way in the next generation of community building by merging the strengths of CeFi and DeFi,” says Chan. “As a CEX, we have notable strengths like robust security protocols, a smooth and user-friendly registration process, an intuitive interface and substantial liquidity. These advantages will remain intact as we incorporate decentralized features, such as PhemexDAO governance and on-chain lending protocols. We invite Phemex Soul Pass holders to come and own a part of our platform and accompany us on our journey to revolutionize crypto trading.”
Future-proofing the platform
If all these sound a little confusing – granted it would be easier to draw than explain. But there really is a reason for every component, and while these concepts may be unfamiliar now, they are likely to be all around us very soon.
The structure that Phemex is building ensures that everybody is who they claim to be through soulbound token authentication. Furthermore, the two issues of illiquidity and hijacked governance, which have consistently plagued exchanges in the past, cannot take root at Phemex.
It is that liquidity that brings us back to the $50 million hook. Very few crypto projects have any business even joking about taking that kind of loss. But Phemex’s founders believe that they have two things in their favor. The first is that they are exceptionally good analysts and traders and are very confident in how BTC is likely to move in this tight horizon. The other is that their reserves include a hedging mechanism that is more than adequate to handle a sharp, unpredictable swing.
“Over the past months, we’ve witnessed BTC maintaining its ground around the $30K mark. But in crypto, change is the only constant. As we approach the anniversary of BTC's launch, we saw an opportunity to inject fresh energy into the market,” Chan says. “Some may think our prize pool is too good to be true, and yes, it's unprecedented. Yet, we have unwavering confidence in our team's market expertise and our robust liquidity pools. We're here to make waves and demonstrate that in the world of crypto, anything is possible.”
The first step on the journey toward that BTC prize money is to register for a Phemex Soul Pass, an example of what Vitalik Buterin described as a “soulbound token” that cannot be bought, sold or transferred between two wallets. Phemex Soul Pass ensures the provenance of its holder for Know Your Client compliance as well as internal governance purposes. Holders can continue to take advantage of the Soul Pass benefits beyond the BTC event. With the upcoming launch of the Phemex Token, the platform is likely to elevate its offerings even further.
