A brand new token that permits merchants to get brief publicity to bitcoin (BTC) with out really shorting the asset has simply been introduced, with the corporate behind the innovation saying extra tokens are to be rolled out quickly as a part of what it calls “a brand new paradigm in cryptocurrency investing.”
The brand new token, dubbed BTCSHORT, was introduced by the issuing firm Amun immediately, Wednesday, and goals to supply merchants a technique to get the “inverse return of bitcoin for a single day.” In different phrases, the token shall be value extra as bitcoin falls in value, and vice versa.
In contrast to another derivatives available on the market, Amun’s BTCSHORT token isn’t leveraged, though it’s nonetheless designed primarily for shorter holding intervals of lower than someday as a result of each day rebalancing required for such derivatives.
The chart under reveals the efficiency of BTCSHORT if it was purchased on March 11 after which offered on the finish of March 12, when the crypto market crashed:
In response to Amun, the brand new token, which is constructed as an ordinary ERC-20 token on the Ethereum (ETH) community, will be bought on different crypto platforms like Liquid, Bitcoin.com, and HitBTC, Amun states on its web site.
Along with the brief BTC token already launched, Amun says it’s already creating derivatives merchandise for different digital belongings. CEO of Amun, Hany Rashwan, instructed Coindesk that tokens that monitor the inverse of different cryptocurrencies may even be launched quickly, with an inverse token for ETH being deliberate for the approaching weeks.
The brand new token comes after Binance in March determined to delist a number of related tokens that offered leveraged publicity each on the lengthy and brief facet to cryptoassets like bitcoin, ethereum, EOS, BNB, and XRP, with CEO Changpeng Zhao then arguing that “customers do not perceive them.”
Amun additionally pressured that BTCSHORT “is strictly not a safety, carries many dangers, and isn’t appropriate for risk-averse token holders and merchants. This sort of token is greatest suited to subtle, extremely risk-tolerant token holders.”
The corporate is a part of the bigger Switzerland-based 21Shares model, which has made a reputation for itself within the trade as an issuer of crypto-tracking exchange-traded merchandise (ETPs) which can be publicly traded on a number of inventory exchanges all through Europe.