A brand-new token that enables traders to get brief direct exposure to bitcoin (BTC) without in fact shorting the property has actually simply been revealed, with the business behind the development stating more tokens are to be presented soon as part of what it calls “a new paradigm in cryptocurrency investing.”
The brand-new token, called BTCSHORT, was revealed by the providing business Amun today, Wednesday, and intends to use traders a method to get the “inverse return of bitcoin for a single day.” Simply put, the token will be worth more as bitcoin falls in rate, and vice versa.
Unlike some other derivatives on the market, Amun’s BTCSHORT token is not leveraged, although it’s still developed mainly for much shorter holding durations of less than one day due to the everyday rebalancing required for such derivatives.
The chart below shows the efficiency of BTCSHORT if it was purchased on March 11 and after that cost completion of March 12, when the crypto market crashed:
According to Amun, the brand-new token, which is built as a basic ERC-20 token on the Ethereum (ETH) network, can be acquired on other crypto platforms like Liquid, Bitcoin com, and HitBTC, Amun states on its website.
In addition to the brief BTC token currently introduced, Amun states it is currently taking a look at producing derivatives items for other digital possessions. CEO of Amun, Hany Rashwan, informed Coindesk that tokens that track the inverse of other cryptocurrencies will likewise be introduced soon, with an inverse token for ETH being prepared for the coming weeks.
The brand-new token follows Binance in March chose to delist numerous comparable tokens that supplied leveraged direct exposure both on the brief and long side to cryptoassets like bitcoin, ethereum, EOS, BNB, and XRP, with CEO Changpeng Zhao then arguing that “users don’t understand them.”
Amun likewise worried that BTCSHORT “is strictly not a security, carries many risks, and is not suitable for risk-averse token holders and traders. This type of token is best suited for sophisticated, highly risk-tolerant token holders.”
The business is part of the bigger Switzerland-based 21 Shares brand name, which has actually gone far for itself in the market as a provider of crypto-tracking exchange-traded items (ETPs) that are openly traded on numerous stock market throughout Europe.
Learn more: Bitcoin ETP Company Amun: Trading Volumes Will Originate From Retail