Greetings to you my dear readers.Today I present a new and unique project.Trading on the crypto-currency market has already gone through several stages of development: from the first centralized exchanges, where there were practically no volumes, to several hundred exchanges, where the leaders have a turnover of more than a billion dollars a day. The U.S. securities and exchange Commission (SEC) recently allowed bitcoin futures trading on major U.S. stock exchanges.
The market is becoming increasingly similar to conventional stock and commodity markets. However, one of the segments that many players and especially hedgers cannot bypass is completely unavailable today. It's about options.
In the familiar world, options are traded on exchanges that have a huge turnover. Typically, one side of the transaction are speculators who want to make a profit, and the other - companies that want to insure their risks (for example, from a sharp drop in prices).
Why such an exchange has not yet been created in the crypto-currency market? There are a number of reasons that will be discussed below. Few people understand what options are. Therefore, it seems to me that the demand for this service is low.
Actually, it's huge. It's just that the players who form this requirement cannot find the appropriate tool they need, primarily for risk insurance.
For example, the client pays insurance in the amount of 0.1 Bitcoin and for a Deposit of 3 Bitcoins. If the price is reduced by 15% within 3 days, he is entitled to receive insurance in the amount of the Deposit drop-0.45 Bitcoin.
In the event of an insured event, CRYPTOCOIN INSURANCE pays the customer insurance against previously received insurance. If there was no insured event, the insurance paid by the client will be the income of the company.
In fact, this is the option mentioned above. However, in order not to embarrass a great number of customers who do not understand and do not want to deal with options CRYPTOCOIN INSURANCE has created a solution "two in one":
INSURANCE CRYPTOCOIN launches the world's first optional cryptocurrency exchange.
CRYPTOCOIN INSURANCE creates a insurance company, places the options in insurance, which is understandable to everyone, and hedges its risks on the options exchange.
In most cases, the company that first enters the market, as you know, becomes the leader and always occupies the largest share. Today CRYPTOCOIN INSURANCE has no competition and occupies all the market.
There is no solution to insure a Deposit in Bitcoin or Ethereum from falling.
At the same time, there is increased volatility in this market, which makes people afraid to store large amounts of money in cryptocurrency. On the other hand, large companies are slow to enter the market (for example, do not accept payments in cryptocurrency) for the same reason.
There is no special cryptocurrency exchange where you can buy/sell options.
The main fear of creating such an exchange is increased volatility. Everyone who deals with stock options, oil or wheat seems to think that the risks are huge.
In the cryptocurrency market there is still no possibility of short sales.
No one can sell a cryptocurrency that is physically absent from the account for a short period of time. This reduces the ability of speculators to smooth price fluctuations in other markets. In turn, this leads to an increase in volatility and the consequences listed in paragraphs 1 and 2 above.
- CRYPTOCOIN INSURANCE allows you to insure the risks of a rise or fall in the prices of basic cryptocurrency.
The exchange will begin to work with the 5 cryptocoins with the highest market. In addition, as demand and turnover increase, other cryptocurrencies will be added.
CRYPTOCOIN INSURANCE sells insurance as Bitcoin and Ether. Thus hedging the risk. The lack of competition in the market allows to maintain a significant margin of 20%. CRYPTOCOIN INSURANCE Repack and sells / buys your own risk as options on its own stock exchange.
- CRYPTOCOIN INSURANCE creates the first cryptocurrency, optional exchange.
The main fear of options in the cryptocurrency market is increased volatility. But is that really the case?
Consider the example of the usual stock market. For example, the client sold the option on a share of company ZZZ. It's Saturday and the market is closed. There is unexpected good news and stocks are growing at the opening of the market on Monday 2-10 times. In turn, the seller of the option bears huge losses.
The advantage of the cryptocurrency market, unlike the stock or commodity one, is that it works 24 hours a day. And for the entire period of its existence (about 10 years) there was no news that would quickly shift the price of Bitcoin or Ethereum by at least 30-50%. In fact, if it's only about blue chips, the cryptocurrency market is much safer for option sellers than other markets we're used to.
- Options allow short sales.
Without having a physical bitcoin or Ethereum, you can get an option to drop Them, and actually make an uncovered sale.
This opportunity brings to the market a lot of new traders, investors and speculators, as well as hedge funds that invest not only in the growth but also in the fall of the markets.
Tokens CCIN will be posted during the ICO. Their total number is strictly fixed. All tokens that are not redeemed at the time of placement will be destroyed. They will never be issued additionally. They will be hosted using the Ethereum smart contract. A fixed number of tokens CCIN guarantees customers to increase their value with the growth of exchange earnings. Tokens will be deposited on cryptocurrency exchanges within 30 days after the end of the ICO.
The distribution of tokens
CRYPTOCOIN INSURANCE has developed a simple model of increasing the value of the token CCIN. 30% of each Commission received by the options exchange will be sent to the liquidity Fund. In the next month CRYPTOCOIN INSURANCE sends these funds to purchase tokens CCIN from the market and burn them.
This business model is adopted solely in the interests of investors. The promise to buy tokens from future profits cannot be transparent. Moreover, the exchange or platform may never make a profit physically. In the case of CRYPTOCOIN INSURANCE, investors know for sure that every buy/sell transaction of an option generates the cash flow used to buy tokens.
This allows you to constantly shift the balance of the market and increase the demand for CCIN tokens.
If the turnover is $ 50 million per day, the Commission for both sides of the transaction will be $ 500 000 or $ 15 million per month. 30% of this amount or $ 5 million is sent monthly to purchase CCIN tokens from the market.
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