How a Hong Kong Hike Paved the Way for a Revolutionary Crypto Trading Product

In 2015, a chance conversation on a Hong Kong hiking trail sparked the idea for a game-changing financial product. Ben Delo, co-founder of BitMEX, was discussing the challenges of creating a futures contract that met the needs of his customers. They wanted a product that combined the benefits of spot trading with the leverage of derivatives, but without the frustration of frequent expirations. Delo's friend, Bavik, a derivatives trader, suggested a contract with no expiration date, which theoretically would be worth infinity. However, by charging an overnight rate, similar to LIBOR in traditional finance, they could make it work. This conversation laid the groundwork for the perpetual swap, a product that would go on to revolutionize crypto trading. The story of BitMEX and the perpetual swap is one of innovation, perseverance, and the power of listening to customers. From its humble beginnings to its current status as a cornerstone of crypto trading, the perpetual swap has come a long way, and its impact will only continue to grow.