Inverse Bitcoin Token Launches on Ethereum Network Ahead of Halving
Crypto

Inverse Bitcoin Token Launches on Ethereum Network Ahead of Halving

Source: Adobe / vladim_ka

A new token has just been announced that will allow traders to get a short exposure to bitcoin (BTC) without actually shorting the asset. The company behind the innovation says more tokens will be rolled out soon as part of what it calls “a new paradigm”. in investing in cryptocurrency. “

The new token, called BTCSHORT, was announced by the issuing company Amun today, wednesday, and aims to provide traders with a way to get the ‘bitcoin reverse return for one day’. In other words, the token will be worth more as bitcoin drops in price and vice versa.

Unlike some other derivatives on the market, Amun’s BTCSHORT token is not used, although it is still primarily designed for shorter holding periods of less than one day due to the daily realignment required for such derivatives.

The chart below shows the performance of BTCSHORT if it was bought on March 11 and then sold at the end of March 12, when the crypto market crashed:

Inverse Bitcoin Token is launched on Ethereum network before halving 102
Source: Amun

According to Amun, the new token, which is built as a standard ERC-20 token on the Ethereum (ETH) network, can be purchased on other crypto platforms such as Liquid, Bitcoin.com, and HitBTC, Amun states on his website.

In addition to the short BTC token that has already launched, Amun says it is already making derivative products for other digital assets. CEO of Amun, Hany Rashwan, told Coindesk that tokens that follow the inverse of other cryptocurrencies will also be launched soon, with an inverse token for ETH scheduled for the coming weeks.

The new token comes next Binance in March decided to delete some similar tokens that used cryptoassets such as bitcoin, ethereum, EOS, BNB and XRP on both the long and short sides, with CEO Changpeng Zhao then claiming that “users don’t understand them” .

Amun also emphasized that BTCSHORT “is not strictly a security, involves many risks and is not suitable for risk-averse token holders and traders. This type of token is best suited for advanced, highly risk tolerant token holders. ”

The company is part of the larger Swiss-based company 21 Shares brand, which has made a name for itself in the industry as a publisher of crypto-tracking exchange-traded products (ETPs) that are publicly traded on various exchanges across Europe.
___

Learn more: Bitcoin ETP publisher Amun: trading volumes come from retail

mm
James Donald
James Donald writes for the Crypto section of Select News 91. He is an economic expert with a special interest in the unregulated currency system. He believes that the future of the planet lies in the unregulated system and that cryptocurrency is only beginning its journey. Whether his prediction is true or not, his skills certainly show his ability to analyze trends and dissect policy decisions. His column talks about the various cryptocurrencies failing and succeeding in a market that is nowhere near saturation.

Leave a Reply

Your email address will not be published. Required fields are marked *