Representatives of the crypto asset management company Metalpha Technology Holding Ltd ( NASDAQ: MATH ) announced the signing of a partnership agreement with the Litecoin Foundation. Together they will work on developing sustainable mining solutions in the Litecoin ecosystem ( LTC ).
Metalpha Technology Holding Ltd will create new financial derivatives for LTC tokens. The activity will be aimed at supporting cryptomayners, hedging market risks and reducing the negative impact of the extraction of virtual assets on the environment.
Specific areas of partnership research will include the development of derivative products, the promotion of renewable energy sources, energy efficiency and the reduction of carbon emissions into the Earth’s atmosphere.
The leaders of Metalpha Technology Holding Ltd and the Litecoin Foundation reported that they are developing a long-term cooperation program. As part of it, they will start working with universities and research institutes to create and promote « sustainable innovations » in the field of blockchain, support public education on the Litecoin network and raise awareness about the network, its implementation and scalability.
Market experts recalled that hedging — is a risk management strategy used to compensate for losses from investments by opening the opposite position on the respective asset.
Cryptocurrency mining on the lightcoin network is carried out using the ( PoW ) work proof algorithm. Extractors receive LTC coins as a reward, and sell them on the open market to cover expenses and make a profit. Analysts emphasized that the fall in prices for crypto assets in 2022 led to a serious outflow of miners, as they could not continue the business due to high resource costs and low revenue.
