During the last few months, Bitcoin.com’s cryptocurrency exchange has added a number of new coins and features. Today, Bitcoin.com Exchange has added an Ethereum-based inverse token called “BTCSHORT,” a token that gives users exposure to the inverse or -1x the daily performance of Bitcoin on any given day.
Bitcoin.com Exchanges Adds Amun’s BTCSHORT Inverse Token
Bitcoin.com Exchange traders can now access a new Ethereum-based inverse token created by the company Amun. Our cryptocurrency trading platform has added BTCSHORT so traders can gain exposure to the inverse or -1x the daily performance of bitcoin (BTC). The new token will be accessible at 10:00 a.m. UTC and it will be paired with the stablecoin tether (USDT). A recent blog post published by Bitcoin.com explains how the BTCSHORT product from Amun works and how customers who use our exchange can leverage the token.
“BTCSHORT is strictly not a security, carries many risks, and is not suitable for risk-averse token holders and traders,” the blog post explains. “This type of token is best suited for sophisticated, highly risk-tolerant token holders who understand and are comfortable with taking on the risks inherent to inverse tokens like BTCSHORT and understand the risks associated in holding tokens generally and inverse products in particular.”
How BTCSHORT Works
For instance, if the price of BTC is trending downward then BTCSHORT’s multi-day performance will prosper, and daily returns of the token will be compounded. In contrast, if there is low volatility and the price of BTC is headed northbound, then BTCSHORT’s performance will drop and there will be no compounded returns.
“Losses made on one day will be, because of previous losses, applied to a smaller amount,” the announcement details. “This means that compounding will lead to slightly reduced losses than if there were no compounding.” Additionally, the BTCSHORT listing announcement adds:
BTCSHORT offers a notional exposure to -1x the daily performance of Bitcoin. It is crucial that all token holders understand how compounding and the daily rebalancing of the token affect performance, especially in volatile markets. The tokens are designed for holding periods of equal or less than one day and holders need to consider their holdings each day.
If you are interested in learning more about BTCSHORT and other digital asset token backed by industry experts then check out Amun’s website and frequently asked questions (FAQ) section. If you want to join one of the fastest cryptocurrency trading platforms on the market today, then check out Bitcoin.com’s Exchange today.
Our exchange is a simple-to-use trading engine that offers a variety of different cryptocurrencies. Popular digital assets hosted on the platform include coins like litecoin (LTC), ripple (XRP), tron (TRX), zcash (ZEC), stellar (XLM), dash (DASH) and eos (EOS) are paired with markets denominated in base currencies such as bitcoin cash (BCH), ETH, BTC, and tether (USDT).
What do you think about the token BTCSHORT? Let us know in the comments below.
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