Professional options trader Sober Li Kun has written a user experience article for Coincall, a cryptocurrency options exchange that specializes in options trading. In the article, he shares his personal views on the platform’s native token $CALL and the pain points that Coincall addresses.
Table of Contents:
I. What is Coincall?
1. The most comprehensive altcoin options exchange on the market
2. What pain points does Coincall solve in options trading?
3. Focusing on education and improving the ecosystem before expanding the market
4. What are the shortcomings of Coincall?
II. What is the value of the $CALL token?
1. What are the token’s application scenarios?
2. Does the $CALL token have a buyback mechanism?
III. How should I handle my $CALL tokens?
This article is a sponsored article written by Coincall and does not represent the views of the publication or serve as investment advice. For full disclaimer, please refer to the end of the article.
Why have I spent so much effort on $CALL tokens in the past three months? What pain points does Coincall address in the market? What capabilities does the $CALL token provide on the Coincall exchange? Can early players like us benefit from it?
Sober Li Kun is a professional options trader with a US CFA certification. He specializes in crypto options and also trades traditional financial options in US and Chinese stocks. He has won the OKX options competition in the VIP category and is a well-known figure in the Chinese-speaking options community.
As someone familiar with me would know, when Signalplus partnered with Coincall to hold the second Options Academy, I gave two basic options courses on Coincall. It was during this time that I started using and getting familiar with this cryptocurrency options exchange. After a few months, I realized that Coincall is playing the role of a challenger in the market. Why do I say that? I present a few pain points that Coincall addresses for everyone’s discussion:
1. The most comprehensive altcoin options exchange on the market
This statement should be quite objective. In the past few years, players in the cryptocurrency options market could only operate with BTC and ETH, and I didn’t even look at altcoins’ fundamentals. However, Coincall currently offers options on various altcoins such as SOL, DOGE, XRP, KAS, LTC, MATIC, LINK, TRX, FIL, BCH, and more.
From past experience, whether it is the current bull market or historical cryptocurrency bull markets, altcoins with solid fundamentals always have the strongest explosive power. If we allocate our assets reasonably to spot or options on altcoins, we can maximize the odds. This way, our overall investment portfolio will be smoother in terms of investment comfort, and the overall assets will rotate and rise. Just like the recent strong performance of DOGE and KAS, followed by the surge in BCH.
Previously, I made a 1367% profit on DOGE.
2. What pain points does Coincall solve in options trading?
Options trading has always been a niche area in the cryptocurrency market. Besides the slightly higher learning threshold, one of the most important reasons is the poor liquidity of individual option strikes due to factors such as strike price and expiration time. However, Coincall’s appearance was unexpected. The bid-ask spread for low-priced options on BTC can reach $15, which requires a significant investment of market-making resources to achieve. This demonstrates a high level of professionalism and sincerity.
In addition to low bid-ask spreads, we can also observe the market depth. In general, the market depth for BTC is about 50 contracts, which is sufficient to meet the needs of retail traders and ordinary large traders. If you want to trade more than 100 contracts, you can directly engage in block trades. Coincall is prepared to accommodate traders of any size.
3. Focusing on education and improving the ecosystem before expanding the market
When we initially discussed collaborating with Coincall, both I and my colleagues from 4ce labs were very surprised. It was the first time we heard of collaborating with an exchange without KPI or account opening assessments. They only wanted us to provide some educational articles, focusing on reducing the learning threshold for cryptocurrency options and achieving a vibrant options market similar to traditional financial markets.
Coincall’s initial goal was to enlarge the market pie first so that we could better advance the ecosystem together. How many times have we seen conflicts and infighting within the crypto industry, resulting in us struggling within the same small circle? Coincall’s approach indeed allows me to see a different landscape even from exchanges.
4. What are the shortcomings of Coincall?
Coincall brings solutions to the cryptocurrency options world, but it is not perfect. On the contrary, there are still several issues that need to be addressed as soon as possible. If Coincall can overcome them quickly, it will take another step forward, and I will have more reasons to believe that Coincall will play a more significant role in this market.
Quickly provide a Portfolio Margin (PM) mechanism
The PM mechanism effectively reduces trading risks for investors, which is especially important for professional options traders. Additionally, PM increases market liquidity, making trading more flexible and efficient. This mechanism also attracts more options traders, especially those seeking stable trading.
Improve a more robust trading system
Enhancing system stability and security is crucial. A robust trading system effectively reduces the risks caused by technical failures, making the entire trading process safer and more reliable. If Coincall intends to attract more users, it needs to work harder to improve its product.
Disclose more information about the $CALL token’s issuance and fundraising plans
With a total supply of only 300 million tokens, Coincall’s issuance is relatively restrained compared to other exchanges. Disclosing the initial circulating supply and token unlocking plans in the upcoming whitepaper will make the valuation of the $CALL token very attractive.
2. What are the token’s application scenarios?
There are multiple token application scenarios, including regular exchange fee deductions and Launchpool, among others.
However, what caught my attention recently is Coincall’s DEX (Decentralized Exchange) plans. In terms of on-chain DEX options markets, unicorns similar to perpetual futures markets have emerged. This is because liquidity and risk control in options are challenging for ordinary DEX teams to solve.
Coincall, as a platform with rich options trading experience, will explore the potential of this market. In terms of the chain, Coincall has chosen the most robust ETH L2 and SOLANA for synchronous development. On the one hand, it is based on mature technology, and on the other hand, SOLANA has high TPS (transactions per second) and popularity, providing room for imagination in terms of high TVL (total value locked) for future DEX. Coincall’s DEX model is expected to be similar to DYDX and AEVO, which helps address many KYC (know your customer) issues and is expected to launch within this year.
Overall, the launch of DEX will provide more functionality and value to the $CALL token.
3. Does the $CALL token have a buyback mechanism?
Yes, the $CALL token has a buyback mechanism. The token’s deflationary nature is the most powerful guarantee for its future value. According to the current information, the platform will use 30% of its quarterly profits to repurchase $CALL tokens and burn them, gradually reducing the total supply of the 3 billion $CALL tokens.
After the $CALL token is listed later this month, I will continue to accumulate if the secondary market price is below $1. If the $CALL token price reaches $3-6, I will sell 20% of my position, and the remaining position will follow the rhythm of the overall bull market and be gradually sold out.
However, I will retain 20% of the $CALL tokens overall, expecting greater returns from the launch of the DEX.
I believe this selling strategy is relatively defensive and balanced, providing a sense of comfort.
For more details about $CALL:
https://www.coincall.com/call
Coincall official website:
https://www.coincall.com/
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