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Binary options and sports betting will be available shortly on the Thales platform, which is built on Synthetix.
A $2.5 million seed round was just completed for a decentralised financial business that offers binary options trading.
Binary options are financial products that allow traders to speculate on the underlying market’s or cryptocurrency’s price movement. Because there are only two conceivable outcomes, they are classified as binary.
Thales will first offer markets for more than 60 assets, including cryptocurrencies, commodities, stocks, and index products, before extending into sports markets. There was no mention of a precise launch date at the time of writing.
Framework Ventures and Apollo Capital lead the strategic investment round for the Thales platform. Other venture capitalists that contributed included LD Capital, Honey DAO, the LAO, Zee Prime Capital, IOSG Ventures, D64 Ventures, and Koji Capital.
The announcement added that there will be a two-year token vesting strategy by the protocol’s strategic partners starting at the token generation event.
The funding round was completed using ‘DAO-first capital formation’, a method proposed by Synthetix founder Kain Warwick earlier this month.This method allows the project to establish token holder-based governance far faster than going via legal structures and processes.
Thales is a Synthetix ecosystem project that is developing support for binary options and on-chain derivatives trading on the Ethereum network. Synthetix’s key contributors began looking for an external team in late 2020 to create a binary options trading platform that would become Thales. The SynthetixDAO provided seed financing to get the initiative off to a good start.
Thales’ token distribution scheme will favour active Synthetix community members, with SNX stakers with minted debt receiving 35% of the 100 million tokens. Another 45 percent will be given to different incentive programmes and yield farms, with the remaining 20 percent, or 20 million Thales tokens, going to the existing and future team.
According to Jordan Momtazi, a core contributor at Synthetix, the Thales airdrop would most likely take place between August and September.
Thales plans to enter the world of on-chain sports betting through a collaboration with Chainlink, which will provide the oracles and data feeds.
It was reported in 2019 that US regulators were increasing worried about the rise of binary options scams for this high-risk derivatives trading strategy appearing in the crypto sector.