Plus500 Is Now an Established Crypto Firm
When most of the trading exchanges were afraid of exposing investors to the ever-volatile crypto space, Plus500 had different plans. It was the first company to offer derivative services on bitcoin a few years ago and now comes with multiple new features.
After the crypto market skyrocketed in December 2017, the firm witnessed a change in fortunes as new customers joined rapidly. The profits recorded new heights even after the regulators considered it to “specialize in toxic products.”
Within the past 18 months, the shares have increased by 300 percent. Currently, boasting a 2-billion-pound net worth, the firm is injecting the crypto sphere in London’s main market even after the space was criticised by experts. Joining the likes of CMC Markets and IG Group it will amend its listings on Tuesday.
The company was found in Israel and sponsors Atletico de Madrid, a football club, and has been blamed for attracting novice traders towards its platform with continuous challenges from regulators.
Its move in the central market has come amidst a time when traders are finding it hard to make decisions about investing. As the market awaits impending regulations most of the investors are not clear about buying more digital coins.
Although people claim the hype around virtual coins is slowly dying, yet Plus500 believes that crypto space has now matured and is able to meet new regulations for settling fresh investors.
CEO, Asaf Elimelech, informed that in the initial days of the firm it had a market capitalization of 150 million pound and people questioned about its valuation. He claimed that today his company has proved that investors were not wrong.
Elimelech added, “What we brought to the market was basically a technology that didn’t exist [before].” He stated that the group hired only the best of the employees. “Instead of there being ten employees that are doing quite good work, we were after that one specific employee, the ‘genius one,’” he said.
On the other hand, managing director at Forex Datasource, Javier Paz, said: “Retail interest in bitcoin is following the decline in price, which is a big minus for the retail brokers like Plus500 — and there’s increased competition in the market.” He added that they are facing negative phase in relation to crypto.
Plus500 has argued that total lifetime of its clients is steadily increasing. It claims that any changes in the market will not be able to affect the profits of the company and it would keep developing new age technology. It seems that they are happy because of the new regulations as now the market is clearer for the industry is having long-term goals instead of making small time gains.
All in all the company is making news even after suffering from fines posed by UK’s Financial Conduct Authority and Belgium’s financial regulator. Moreover, a crypto derivative is an extremely risky venture, and the company has been able to hold their ground even after huge ups and downs in the market. Only time will tell, whether it will survive the new regulations and the current downshift in crypto prices.