Dear reader, Just as my usual practice of bringing valuable and profitable information across your way, let me quickly give you information about this great innovation known as “CRYPTOCOIN INSURANCE”. Please sit down and relax your nerves as you read. Also, I encourage you not only to read, but also to take an important step as part of this great innovation.
About Project Cryptocoin Insurance
Options is a derivative financial product sold by an option writer to an options buyer. The contract gives the buyer the right, but not the obligation, to buy (call option) or sell (put option) the underlying asset at an agreed price for a certain period of time or at a fixed precise date. The agreed price is called the strike price. There are many types of options. An option may be exercised at any time prior to the expiry date of the option, while other options may only be exercised at the expiry date (exercise date). Exercising means using the right to buy or sell the underlying security.
It seems difficult! That's why this project is divided into two parts: Option Exchange and Insurance Company:
Traders and hedge funds reach agreements on buying and selling stock options
Other customers, who do not want to know how the option works, can buy insurance for the growth or decline of major cryptocurrencies.
Cryptocoin Insurance has two main sources of income
Profit is generated as a trading commission from each transaction on call or put options. It is 0.5% per transaction or 1% per circle for each party to the transaction.
Given the volatility of options and huge profit opportunities, this commission is not meaningful for market participants. However, this allows the exchange to earn a high income compared to the usual exchanges of cryptocurrency because of the total absence of competition. In the event of future competition, the amount of the foreign exchange commission may be reduced proportionately.
Income is generated by selling growth / decline insurance of cryptocurrency.
There is no solution to ensure the deposit in Bitcoin or Ethereum to fall.
At the same time in this market, volatility increases, which makes people afraid of storing big funds in cryptocurrency. In addition, large companies are slow to enter the market (for example, to accept payments in a cryptocurrency) for the same reason.
There is no special cryptocurrency exchange where you can buy / sell options.
The main fear of creating such a stock market is increased volatility. It seems to all those who are dealing with options for stocks, oil or wheat that the risks are enormous.
There is still no short selling opportunity in the cryptocurrency market.
Nobody can sell a cryptocurrency that is physically absent from the account in a short period of time. This reduces the ability of speculators to mitigate price fluctuations in other markets. In turn, it causes the increase in volatility and the consequences listed in Cl. 1 and 2 above.
CRYPTOCOIN INSURANCE allows you to ensure price reductions or growth risks for the main cryptocurrencies.
CRYPTOCOIN INSURANCE creates the first exchange of options.
Options allow short sales.
How does it work?
The price of any option at any given time depends on supply and demand and changes constantly. Option buyers risk only the amount spent to buy the option, for example, $ 100. They can not lose more in other circumstances. The option seller theoretically has an unlimited risk linked to the change in the price of the basic asset (Bitcoin or Ethereum). This is why each sale of the option is accompanied by a security guarantee (GS).
The guarantee bond is the amount (margin) required by the exchange as collateral of the option seller to meet its obligations. GS is established by the exchange in a fixed amount on a certain date and for an option contract. The GS value is indicated in the specification of this contract.
By selling an option, the seller immediately gets the premium paid by the buyer of the option. The exchange freezes a portion of the funds on the seller's deposit until the transaction is completed or the position by the option is closed. GS may change as the volatility of the core asset increases / decreases.
If the price of the base asset is transferred against the seller, he must provide additional security if he continues to hold this option or sell it. This process is regulated by the exchange in automatic mode. If the option seller does
not have enough money in his account, the stock market will automatically liquidate this option.
The exchange sets a limit to the maximum number of options that can be taken on one side of the market. This protects the exchange against situations where, due to the strong market movement in one direction, it can not quickly close the options of sellers whose deposits are below the GS.
chips CCINs Token CCIN will be placed for the ICO. Their total number is strictly fixed. All chips that are not traded during the placement will be destroyed. They will never be issued anymore. They will be placed using the Ethereum Smart Contract. The fixed number of CCIN tokens guarantees their buyers the increase of their value as the exchange gains increase. Tokens will be introduced into cryptocurrency exchanges within 30 days of the end of the ICO.
CRYPTOCOIN INSURANCE has developed a simple and understandable model for increasing the value of the CCIN token. 30% of each commission earned through the exchange of options will be directed to the liquidity fund. Over the next month, CRYPTOCOIN INSURANCE is sending these funds to buy CCIN tokens on the market and burn them.
Structure of the ICO
Token Price: 3,000 chips CCIN = 1 ETH
ICO Date: November 1, 2018-27 December 2018
Minimum Recovery Amount:
$ 0.5M ICO Primary Target: $ 5
Amount Maximum Amount Collection: $ 10M
All tokens that are not purchased when placed are destroyed. The CCIN token is purchased using Bitcoins or Ethereum.
For more information:
WHITE PAPER: http://ccin.io/doc/Whitepapereng.pdf
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