A group of digital asset trading and tokenization pioneers has announced Perpetuals.com (PDC), a derivatives platform focused on machine learning and AI, whose shares will begin trading on the Nasdaq later Tuesday.
According to a press release, the company’s leaders are co-founders of the European Union operations of cryptocurrency exchange FTX, which provides regulated 24/7 automated clearing and blockchain-based payment technology. This entity was announced following the acquisition of Perpetual Markets Ltd. by Earlyworks Co.
Perpetual’s Patrick Gruhn and Robin Matzke were co-founders of a company called Digital Assets, based in Zurich, Switzerland. The company was acquired by FTX’s Sam Bankman Fried in 2021 and rebranded as FTX EU.
After a lengthy legal process, the two companies were able to buy back FTX EU’s remaining assets after the parent company’s bankruptcy and quietly begin operating on the Perpetuals platform, which begins public trading this week.
Gruen said the determination to take back what was left of FTX EU was central to the creation of Perpetual. Perpetual provided a very large dataset of retail trading activity on which to train its AI and machine learning capabilities.
“Prior to the new business combination, Perpetuals developed an AI system trained using one of the largest datasets of retail trading behavior ever collected, analyzing more than 10 million individual trading histories across multiple major cryptocurrency exchanges,” Gruhn said in an interview.
The aim is to help product issuers create innovative alternatives to the highly regulated and often predatory contracts for difference (CFD) and perpetual futures markets, Gruhn said.
Perpetuals aims to disrupt these markets with its AI-powered products, ultimately protecting retail users from losses in a historically unfair and unethical trading environment, he said.
“This model identifies patterns in market-wide sentiment and calculates the probability of winning or losing a single trader. Financial market participants, such as issuers of products such as option writers and market makers, can use this model to optimize hedging strategies,” Gruhn said.