In 2015, on a hike in Hong Kong, BitMEX co-founder Ben Delo conceived the idea of a perpetual swap, a financial product that would go on to transform the crypto trading landscape. The concept was born out of frustration with traditional futures contracts, which customers found confusing and restrictive. Delo's epiphany was to create a futures contract with no expiry date, anchored to the spot price through a daily funding rate.
This innovation, known as the perpetual swap, allowed traders to speculate on the price of bitcoin with high leverage, without the burden of expiry dates. The product was launched in 2016 and quickly gained popularity, becoming the cornerstone of BitMEX's success and paving the way for the exchange to become the most liquid bitcoin market in the world. The perpetual swap's impact extended beyond the crypto space, attracting the attention of traditional finance regulators and potentially paving the way for its adoption in mainstream markets.
Delo's story is a testament to the power of innovation and the importance of listening to customers' needs, as the perpetual swap has become one of the most successful financial products in history, with an estimated annual turnover of $40-50 trillion.