How a Hong Kong Hike Revolutionized Crypto Trading Forever

The concept of the perpetual swap, also known as a perpetual future, was conceived in 2015 on a hiking trail in Hong Kong. Ben Delo, co-founder of BitMEX and a mathematician, was discussing a problem with his friend Bavik, a derivatives trader. BitMEX had been experimenting with various types of futures contracts, but customers were consistently complaining about their positions being closed without warning. They wanted a product that resembled spot trading but offered the leverage of a derivatives exchange. Delo asked, "What if a future never expired?" Bavik replied that it would be mathematically worth infinity, but suggested charging traders the bitcoin overnight rate to solve the issue. Delo built this concept into a product, inventing one of the most significant financial products of the 21st century. The story of BitMEX and the perpetual swap is one of innovation and adaptation, as the exchange evolved to meet the needs of its customers and created a new standard for the industry.