ETH - based DeFi applies Flux, allowing you to short startups

The Block is on April 11reportsVenture capital is often an area where it is hard for the average person to get involved, whether it's networking or private equity laws that keep people away, and Flux intends to change that.

Flux, founded by Peter Mitchell, Jasper De Gooijer and Jascha Samadi, is a peer-to-peer derivatives trading platform for startups. On Flux, users can make deals by predicting a startup's timeline, which may include product launches, investment rounds, and progress (or setbacks).

Flux was founded in early 2018 as an offshoot of EveryDapp, the co-founder's previous startup. EveryDapp is a dApp discovery platform for users and developers to explore, discover, and test decentralized applications.

After raising an undisclosed financing for EveryDapp, the founders are trying to raise another seed round to fund its growth. The idea of Flux came into being. The Flux platform is built on Ethereum, 0x, Augur, and MakerDAO.

That was when the cryptocurrency market started to collapse and people were disappointed in the venture capital world. So the Flux co-founders decided to set up a platform for venture capitalists who refused to invest in them to "put their money in here and short it".

The company recently released a private alpha that allows early users to test the platform. There are two predictions to trade on:

1. Will Flux Market UG finish the seed wheel before July 1, 2019?

2. Will SpaceX launch a manned rocket by the end of 2019?

Flux is not the only P2P market prediction platform in this area. Companies such as Veil, Guesser and Augur are competing with Flux for the same users.

But Flux's founders say it provides a middle ground for users. Unlike Guesser, who focuses on new users of cryptography, Augur focuses on professionals whose Flux is focused on millennials who already use cryptocurrency.

For Flux, insider trading could be a potential problem. For example, how do you stop a SpaceX employee with non-public information from trading on it? Mitchell also admitted that insider trading is always going to happen because of the nature of the centralized prediction market, and it is hard to avoid the problem fundamentally.

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