Hedging and diversification of investments are an integral part of the finance system, as it helps to mitigate risks. With the growing demand for cryptocurrencies and the ever growing potential of the Blockchain technology, the finance world is witnessing a market boom like no other. Hence it is integral to acknowledge the risk associated with the market and develop a way that would help secure it and protect investors.
The Hedge project wants to create the ideal crypto platform that will provide their users with indices and derivatives trading to minimize the risk exposure, which exists in the crypto market. It will inculcate the process of hedging and include indices that serve as a base for the construction of basket of cryptocurrencies.
Issues of the crypto market that will be addressed
There isn't a benchmark in the crypto market that could represent Cryptocurrencies or even assets as an asset class. With the help of professionally designed indices, Hedge Token plans to create a Crypto Index in order to help investors and traders to better understand the risk exposure. This would allow a universally accepted index to be established on a single platform.
The ecosystem of Hedge will even give investors the opportunity to diversify their investments, by developing CTIs (Crypto Trade Index). This will be carried out in an inexpensive way and will ensure single access point, eliminating the need to maintain trading accounts on several platforms. The CTIs are comprised of various combinations of digital assets.
Moreover, Hedge Token will allow investors to short certain CTIs, shift and manage their own risks in several ways and hedge their standing on the market. It will ensure effective and efficient hedging in the market. And all this can be achieved through a reasonably priced, easily accessible and a secure platform.
The project will enable investors to learn about the top 30 cryptocurrencies and hence take an informed decision in investing in a variety of tokens that have significant potential. The lack of complete disclosure in several projects, limited regulatory oversight, and investor protection is something that Hedge Token aim to deal with. They want to help develop the S&P Index for the Crypto market.
How it works
The Hedge project team is focused on creating a platform that will be the main source of information for investors interested in the crypto markets. Through professionally developed indices on crypto assets and currencies, information such as market research, valuation reports, etc. , they aim to create a benchmark.
It will even take up the role of peacemaker when any of the party defaults on the payment, providing assurance to investors. It will even involve security checks to ensure safe transactions.
Through their unique indices, Hedge will be able to create a financial benchmark, to measure the performance of various cryptocurrencies. It will include a comprehensive index suite, with a detailed rulebook, set rebalancing process and wider institutional applicability. It plans to provide investors with professionally designed and maintained indices which shall enable users to receive comparatively cheaper exposure to the crypto markets. This they will achieve by initially introducing the Bitcoin Price Index (BTCCX) and THE Cryptocurrency Top 30 Index (CCX30). One will measure the movement of bitcoin prices and the other will track the prices of the 30 largest cryptocurrencies by market capitalization, respectively.
Upcoming indices and roadmap
Hedge Project plans to initiate their token sale, come out with the first crypto index rule book and launch their crypto indices in the month of September and further expand their Hedge Token distribution and create a business structure in the month of October.
They will even go on to introduce other crypto indices such as the Crypto Asset Index, which shall follow crypto assets with real-world utility and the Crypto Income Index, that will track the performance of currencies/ coins/ tokens that provide the highest income compared to its value. Along with these, the Crypto (Specific Sector) Indices and the Crypto (Specific Countries) Indices will also be introduced later on. They will help in tracking the performance of many tokens from the same sector.
They will be providing the Hedge Token (HDG) for transactions on the platform, during the company's ICO (Initial Coin Offering). The use and listing of instruments will be conditioned by the purchase of these tokens.
Conclusion
The growth witnessed in the last few years in the crypto world has been really significant. There is no doubt that crypto assets and currencies are developing as a strong alternative to traditional asset classes.
Hedge will go on to truly contribute to this growth and development. They will manage to enhance the attractiveness of cryptocurrencies as an investment option and make it easier for investors to join the crypto market.
The idea of CTIs shows a lot of promise and do have the potential to provide investors with diversified exposure. The ambitious plan of establishing a crossroad between a crowdsourced ecosystem and blockchain oriented marketplace shows a lot of promise for future growth.
To know more Visit:
Website: https://www.hedge-crypto.com/
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Written By: Kishan
Bitcointalk Name: Kishan748