Summary
During the 2020 election, FTX introduced a perpetual contract market where investors could speculate on the election outcome. If Trump had won, the contract would have reached $1, but it dropped to $0 when he lost.
Key Points
1. FTX introduced a perpetual contract market during the 2020 election, resembling the crypto derivatives markets it was renowned for.
2. Investors were invited to place bets on the election outcome, with the contract value reaching $1 if Trump emerged as the winner. Conversely, the value would plummet to $0 if he lost.
3. The contract’s value fluctuated based on the election results, rising or falling depending on Trump’s success or failure respectively.