How a Chance Encounter on a Hong Kong Hike Revolutionized Crypto Trading

In 2015, a casual conversation between Ben Delo, co-founder of BitMEX, and his friend Bavik, a derivatives trader, on a hiking trail in Hong Kong, sparked an idea that would change the face of crypto trading forever. Delo had been struggling to find a solution to a problem that had been plaguing his customers - the constant closure of their positions without warning. The answer, it seemed, lay in creating a futures contract that never expired, a concept that would eventually become known as the perpetual swap. This innovative product allowed traders to buy and sell with leverage, while minimizing the risks associated with traditional futures contracts. The brainchild of Delo, the perpetual swap was the result of a combination of mathematical genius and a deep understanding of the needs of his customers. By charging traders an overnight rate, similar to the LIBOR in traditional finance, Delo was able to create a system that was both fair and sustainable. The launch of the perpetual swap in 2016 marked a significant turning point for BitMEX, as it quickly became the most liquid bitcoin market in the world. The product's success was not limited to the crypto space, as it soon attracted the attention of traditional finance regulators, who began to take notice of its potential. Today, the perpetual swap is considered one of the most successful financial products in history, with a turnover of over $40 trillion dollars a year. Delo's decision not to patent the product has allowed it to be widely adopted, and it is now used by every major derivatives exchange in the world. As the crypto space continues to evolve, it is clear that the perpetual swap will play a major role in shaping its future.