Futures Coming To The Blockchain
Cryptocurrency has been a source of hyper-volatility since its inception. On days where the market can change thousands of dollars in the price of a single Bitcoin, it can be difficult for investors to know what to do. Future options can help solve this problem. They can resolve the high-fluctuating prices of the cryptocurrency markets into something much more stable which is good news for investors. What this means is that their investments do not drop thousands of dollars in a day even though the market price does. For the crypto investor, this translates to a more stable form of investment that may lead to a much broader form of adoption by more traditional investment players. Those institutions consist of banks, investment banks, hedge funds, and more. If this becomes the case, that means the total market capitalisation of cryptocurrencies, in general, is set to skyrocket in the coming years as larger players enter the market. What this means for visionaries who have invested early are significantly multiplied returns on their original investment.
How Do Future Options Work?
Let us say that you are a corn farmer. The traditional market complications that corn farmers face when selling their product is that all farmers typically harvest around the same time. Why is this a problem? If the market becomes oversupplied, that means the price of the corn you harvest is going to plummet. When the price plummets, that means you lose out on your investment, and quite possibly have to foreclose your farm. Where future options come into the picture is to balance your investment and provide risk diversification.
Future options encompass two parties; a buyer, and a seller. It is merely a contract where the buyer agrees to purchase a standard amount of corn (a bushel) with a seller on a specific date. The seller agrees to sell this standard amount of corn on the same date. What this means is that both the buyer and the seller know for sure what price they are buying and selling at regardless of the actual market price of corn on that date. The contract enforces this price between the two parties.
As a corn farmer, this is terrific news for you. What this means is that you can keep your farm because you know how much you can sell a bushel of corn for and can budget appropriately for the future. For the buyer, this means that they know the exact price they can purchase the bushel of corn on the set date. The buyer can budget their books according to the price that they have agreed to as well. The future options contract helps stabilise both of their investments.
Future options can consist of anything from corn, oil, gold, stocks, and in this case, cryptocurrency. There have been various FinTech projects in the market that have launched, but up until now, no platforms have offered future cryptocurrency options to the broader crypto audience. The market is about to change.
FIC Network Introduces Future Options
FIC Network is a FinTech platform that brings future options to the cryptocurrency markets. They have realised the need for future options in the volatile cryptocurrency market and have responded in turn with their technology. As a source of fixed income, this provides cryptocurrency investors with a much more stabilised return on their investments which helps subside the current volatility of the market overall. No longer will future options be a tool of the financial whales of the industry. These investment vehicles are soon to be utilised by the sharks of the market too.
About FIC Network
FIC Network was born out of Factury Inc., a startup founded by Arturs Ivanovs and backed by prominent fintech VCs such as Boost VC, Startupbootcamp Fintech NYC, Bialla Venture Partners and others. FIC Network is a blockchain platform that allows issuance and investments in fixed income assets using cryptocurrencies. FIC will launch its token sale on April 16, 2018. Join the presale or sign up for the whitelist on FIC Network.