Swiss-based startup, Amun, has launched BTCS, which will reward its holders whenever the price of BTC falls over a 24-hour window.
Those interested in making daily gains from falls in the price of Bitcoin can do so via daily purchases. The firm said in its statement that the “short term nature” of the tokens is down to the fact that holders may want to “move in quickly to leverage a near-term decline in Bitcoin to make a positive return.”
Amun’s BTCS token will track Bitcoin’s price with holders gaining when it falls
The new token allows traders to gain from any downside price movements of Bitcoin potentially allowing investors to create effective hedges against BTC’s price
In a statement released Wednesday, the fintech said that its BTCSHORT (BTCS) is a daily token premised on reverse price movements of Bitcoin.
In an interview with crypto publication Coindesk, Amun CEO Hany Rashwan said that there is a “tremendous” demand in the market for tokens such as BTCSHORTS.
“The users want the ability to buy these kinds of products in an easier and safer way”, he added.
According to the firm, BTCS will be available for purchase on HitBTC, Liquid, and Bitcoin.com marketplaces.
Any trader, whether retail or institutional, can leverage BTCS and according to Amun, its release is timely given that it launches days before the Bitcoin halving. This means that traders worried about a potential downtrend can use the token as a hedge against volatility.
The platform will mint the tokens and conduct BTCS token burns to have tighter control over circulation and volume. The token burns will be in exchange for USD Coin, a US dollar-backed stablecoin. Traders in the U.S, Switzerland, and those countries facing international sanctions will not access BTCS.
BTCSHORTS (BTCS) arrives following a similar product Amun launched in January this year. The firm announced an exchange-traded product (ETP) that also tracks downsides in Bitcoin’s price, which it launched on German stock exchange, Boerse Stuttgart.
The SBTC token targeted Europe-based investors and is currently run by 21Shares. Amun says it’s also looking to launch an inverse token for Ethereum (ETH).
As Bitcoin’s halving approaches, the asset’s value has stalled to around $9,000 after resistance was found in its surge to $9,500.
As of press time, the top crypto by market cap is posting gains of 4.63%, with bulls looking to push prices higher.
TokenSoft Expands Security Token Services to Europe With New Swiss Entity
TokenSoft is bringing its security token issuance platform to Europe through a Crypto Valley, Switzerland-based counterpart, TokenSoft International AG.
The regulated STO platform announced Wednesday that it struck a licensing deal with its eponymous European partner, who now has exclusive continental distribution rights for TokenSoft’s tokenization software.
Mason Borda, CEO of TokenSoft Inc., told CoinDesk the agreement was a natural fit for the crypto-friendly Swiss. Regulators there have been far more straightforward about security token oversight than watchdogs in the U.S.
“Due to the regulatory clarity in Switzerland and due to the comfort that the regulators have there with blockchain-based assets, the pace of innovation has been a little bit faster in Switzerland and so that’s why we do see more activity out in Switzerland”, he said.
TokenSoft retooled its STO software to comply with Swiss regulations as well as the EU’s General Data Protection Regulation, the omnibus data privacy law better known by its acronym, GDPR, Borda said. It also supports on-site custody.
Now, that software will have access to the European market through TokenSoft International AG. A press release said that it was “uniquely positioned” to the Swiss market.
“We’re seeing increased demand in the European markets and we’re proud to partner with TokenSoft International AG to help meet that demand”, Borda said in a statement.
The firm, which is not owned by TokenSoft Inc or a subsidiary of it, was incorporated in the Swiss canton of Zug in early February with the purpose of “Providing services in the field of information technology, in particular in connection with the trading of blockchain-based effects”, according to the company registration page.