NEW YORK, NY / ACCESSWIRE / February 27, 2020 / To realize value investment for cryptocurrencies, it is crucial to do "value assessment" based on scientific mathematic models. The recent soaring of platform tokens stirs the investment enthusiasm of investors and hogs the headlines of different media. In this connection, how to do a correct assessment for tokens becomes the major concern of various investment institutions and retail investors.
Since the end of 2019, the blockchain industry keeps going up. However, under this trend, many anticipated innovators and game-changers have treaded on different roads: some ended up in prison under the long bear market, some were downhearted & existed the market, while some activated new vitality by financial innovation.
The emergence of e-payment, i-Finance, and cryptocurrency investment are all based on the part of users that cannot be covered by the traditional financial market. Many startups saw fast-growing under the wind. However, with time goes by, most of them were wiped out, while the survived ones gradually find their position in their industries respectively.
In the blockchain industry, the layout that Huobi specialized in OTC, OKEx in Futures, Binance in Spot trading, and MXC in Leveraged ETF is coming into being. Huobi OTC trading is famous for its safety, efficiency and little price difference, Binance spot trading takes 40% of the crypto-market according to the media report and OKEx is mainly supported by the huge trading volume on Futures.
What is the leveraged ETF in cryptocurrency exchange?
Leveraged ETF products launched by MXC Exchange is one of the innovative products introduced from the traditional market. It tracks the yield rate of underlying assets with certain times (3 times). For example, if BTC gains 1%, the net value of the corresponding 3 times ETF product will rise 3%, while the -3 times product will decrease -3%. The value of a leveraged ETF product is calculated in USDT. Its trading is very similar to spot trading. Leveraged ETF, essentially, is a fund in shares that are pegged with the return rate of the underlying assets at certain times. Investors are able to obtain yield times more than that of the underlying asset by trading leveraged ETF products. When the underlying assets fluctuate against the leveraged ETF you bought over a given threshold figure, the fund management party will rebalance the fund position to ensure the loss not exceeding a limited amount.
Features of leveraged ETF
Investors can trade leveraged ETF on MXC with the same process of spot trading. There is no margin required, so no liquidation problem. Take purchasing BTC3L (3x long of BTC) as an example. Users only need to check the net value, select the proper price, and enter purchase quantity to buy BTC3L.
Leveraged ETF brings in a risk-control mechanism. For example, if BTC falls by 33%, the 3 times BTC long contract will be liquidated undoubtedly, while the leveraged ETF product BTC3L, through rebalancing mechanism, will not approach zero. There will be some assets left.
According to data from CoinMarketCap, the trading volume of exchanges rose remarkably under the third halving of BTC. With the help of leveraged ETFs, the trading volume of MXC Exchange accounts for 5% of the global market now. Product innovation enabling MXC to become the largest and best depth platform for trading leveraged ETF.
SOURCE: MXC PRO FOUNDATION LTD