02/07/2018

DeHedge: Hedging Products for Cryptocurrency Investments

As demonstrated by the recent market correction in both cryptocurrency and stock markets, hedging your bets should be considered a critical part in the development of a sturdy portfolio. DeHedge wants to make hedging investments in digital assets easier with a platform offering tools that allow users to hedge against various events ranging from dips in the spot price to hacked or cancelled ICO’s. Investors will be able to purchase hedging coverage using the DeHedge token, which will also be used to raise the funds to serve as collateral for the products offered by DeHedge.

    DeHedge uses their own scoring model incorporating data analytics to determine the amount of tokens required to purchase hedging coverage. The ICO hedging platform has been under development with release planned for March, 2018. Hedging products available to investors will include ICO cancellation, fluctuations in the spot price of tokens, wallet or ICO hacks, and volatility affecting mining and mining farms. Cofounded by CEO Mikhail Chernov, CCO Bogdan Leonov, and COO Dmitry Ansimov, the DeHedge, advisors to the project include wealth fund manager Jack Hunter, Senior Editor of Irish Tech News FinTech Specialist Simon Cocking, and Taras Yakovenko, a Risk and Business Management professional with over fifteen years of experience. 

The DeHedge ICO has been scheduled for March, 2018 but a specific date has not been set. Eighty percent of the tokens will be reserved as collateral for hedging products with fifteen percent going to the team and, two percent each for the bounty program and advisors and one percent for marketing. Of the amount allocated to the hedging reserve, eighty percent will be reinvested in cryptocurrency assets while the remaining twenty percent will be held for unplanned payouts. 
    Reinvesting eighty percent of the assets allocated to the hedging reserve in cryptocurrencies could expose DeHedge to a significant degree of risk but the availability of financial instruments like hedging products also helps decrease the volatility of digital asset markets. A number of projects in the cryptocurrency space aim to offer derivatives or other financial instruments of interest to traders but hedging products represent a relatively unexplored niche. No matter what the markets do for the rest of the year, demand for these products that allow investors to hedge will not be likely to go away. To learn more about DeHedge please visit their website at https://dehedge.com/

Authored by

Seth Goldfarb

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