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

The concept of the perpetual swap was born out of a problem that had been plaguing BitMEX co-founder Ben Delo for months. Customers were complaining about their positions closing without warning, and Delo was determined to find a solution. On a hike with a friend, Delo asked what if a future never expired, and his friend replied that it would be worth infinity. However, by charging traders the bitcoin overnight rate, Delo found a way to make the concept work. The perpetual swap launched in May 2016 and was a game-changer for the crypto market. It allowed for a futures contract with no expiry date, anchored to the spot price through a daily funding rate. The product was a huge success, and by 2017, BitMEX was the most liquid bitcoin market in the world. The concentration of liquidity was a result of the swap's design, which collapsed multiple instruments into one. Competitors took notice, and soon every major exchange in crypto was offering its own perpetual swap. The product has become one of the most successful in the history of capitalism, with an estimated $40-50 trillion in turnover per year. Delo's innovative solution has paved the way for a new era in crypto trading, and its impact will be felt for years to come.