The Genesis of a Revolutionary Trading Concept: How a Hong Kong Hike Changed the Crypto Landscape

The concept of the perpetual swap was conceived in 2015, during a hike in Hong Kong, by Ben Delo, BitMEX co-founder and mathematician, and his friend Bavik, a derivatives trader. They grappled with the issue of creating a financial product that resembled spot trading but offered the leverage of derivatives. Delo's query, 'What if a future never expired?' sparked a discussion that would change the face of crypto trading. Bavik's response, 'Mathematically, it would be worth infinity,' highlighted the technical challenge, but also led to a potential solution: charging traders the bitcoin overnight rate. Delo's subsequent creation of this rate and the perpetual swap paved the way for a groundbreaking financial instrument. The story of BitMEX and the perpetual swap's evolution is one of innovation, adaptation, and the relentless pursuit of solving the problems faced by traders in the nascent crypto market.