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- a stable index of 90% of the market
- an index that follows a similar rulebook like to S&P500
- an automatically reconstituted and rebalanced portfolio
- the option that their Crypto Traded Index (CTI) will eventually hit the traditional markets as ETF
- the possibility to add particular coins and tokens to his portfolio if he reads an article about for NEO in the Financial Times and gets fancy about it.
Hedge Project is developing the ideal crypto platform that will enable its users Crypto Traded Indices™ and derivatives trading. Now you can easily get exposure to the crypto markets with professionally designed crypto indices that use official rule-books. Manage your risks with derivatives and hedge your exposure to the volatile crypto markets. Hedge Platform will offer users to trade indices, the basket of cryptocurrencies or single derivatives. Buy (or short) the market with a single click.
THE HEDGE ICO and the HDG token
The Hedge ICO is already running and there are only a 2 days left, by the time of writing this. Here are the hard facts:
What are the tokens used for?
The HDG token is a utility token that is used to access the platform eco-system and by definition is not a security – its sole purpose is a membership and transacting token. Basically you can say you are paying your HEDGE and TX fees with this token. Fees generated on the Hedge Platform through buy/selll/transactions are used to buy-back, HDG tokens in circulation – these will be burnt via smart contact . This is scarcity economics to decrease the general supply of the token, which likely will create long term growth for token holders, which should come on top in addition to their positions and profits. You will get the return that accrues from underlying BC30 (return ) and scarcity economics determines HDG long term appreciation . Tx fees from platform are used to buy-back HDG on open markets, these are burned via smart-contract ( auditable) Your fund money to purchase tou buy into BC30 (the name of their first index / CTI) won’t come from the tokens, but from fiat or crypto, most likely ETH.
The HEDGE Project
With an inception date on September 24th, they set a tight timeline to start with their first index BC30. As news follows their indices will be streamed through Reuters and Morningstar beginning in the next few days, which is definitely huge and will bring more eyeballs on the opportunities of crypto in general. The whitepaper of hedge is one of the clearest and best whitepapers we have ever seen, though it could be more detailed in terms of their token economics.
Buchman Crypto 30 Index represents more than 90.0% of total market capitalization. BC30 follows the developments of the wider cryptomarket, tracking the prices of 30 largest cryptocurrencies by market capitalization.
The first of their monthly recomposed index funds is following a strict ruleset (just like the S&P 500), which is a good thing. The rulebook can be found here and looks familar. Despite the fact the idea of a crypto index fund is not new, it is the first one and single one, as far as we know, that follows a transparent rulebook and especially having a Buchman advised fund. As long as the bubble is up, this looks like a stable way to profit from the cryptocurrency craze. The tech behind this composition of this index is well thought-through, as it actively considers the prices across several exchanges, their volume, local distortions and other associated effects. The simulated return on the index value on their website looks pretty teasing. Furthermore they will launch a Bitcoin Price Index (BTCCX) also scheduled for mid of September:
Bitcoin is being traded on various exchanges, and the price can differ significantly. Bitcoin Price Index will be the first commercial implementation of a single reference price of several Bitcoin exchanges.
To be launched within next weeks, Bitcoin Price Index measures the movement of bitcoin prices. With a transparent rulebook, our objective is that the index will become the main reference point for traders, institutions and the wider public.
Teh roadmap of the project is huge and promising, so we might see a Crypto Asset Index, Crypto Income Index, niche specific Crypto Indices, and country specific Crypto Indices, so there is much room for upscaling.
The HEDGE Platform
Making Indices easy to understand and work with for everyone is quite a goal, facing the fact it’s success is depending on the further mass adoption of cryptos. As we can’t access any beta yet, we have only screenshots to rely on, but these look like the promised one-click-investment solution. The single concern we see, is actually the needed token to start through on their platform. As they want to build a bridge for non-crypto-savvy people, it seems ironic that they need to purchase tokens to be able to use the platform. However, this might be just an UX thing and depends on the workflow they implement on the platform that we are not able to see yet.
The platform features basically three areas:
- Crypto Indices
This is where you manage your crypto indices: Bitcoin Price Index, Buchman Crypto 30 Index, and Crypto Assets Index are in the offering here.
- Index Instruments
Traders will be able to trade the CTIs here. In the future, they will launch derivative instruments, margin accounts and ability to take short positions.
- Crypto Instruments Platform
HEDGE wants to become the “go-to” market place for investors interested in crypto markets. Platform will offer access to professionally designed indices on crypto assets and currencies, traded baskets of crypto currencies and other relevant crypto market information, such as market research, valuation reports, etc.
What do we think about HEDGE?
The whitepaper, the team, the roadmap, the platform (as far as one can say by this time), the concept of the indices looks very promising. The fact alone to get streamed on Reuters and Morningstar says much about the potential of their product. However, their goal is bringing crypto with ease to the masses and despite the fact they had quite some nice media exposure, they barely reached their soft cap until now with 2 more days to go. Great news like the Reuters thing have been found just by visiting their Telegram channel, nowhere to be found on their facebook or twitter – and in regards of the soon ending ICO such news are critical to be blasted out in time. Furhtermore there have been changes like haviing Buchman as Advisor, but the changes don’t reflect in the Whitepaper (like the new name BC30 of the Index due to the partnership). If they want to get mainstream and the novice people, a straight communication means very much. As the team is closley connected with RIALTO, which did a great job during their ICO, they should have gotten be aware of this issue. In the TG channel people ask quite often what HEDGE is actually about, sure – these are people that are maybe new to the whole thing, but isn’t this the target group they want to reach? We can see that it is hard to have a website that appears with the needed seriosity AND explain things dead simple, though it is yet a gap to be closed for the project to become successful. The roadmap is impressive and they have much work on their table. Let’s see how much they can achieve how fast, with the rised funds stay at the lower bottom. Despite the marketing issues, they do a darn good job with their product and they know what they are doing, that for sure. We will go in limited, as we can see the vision, the need for their product and a well versed team behind this ICO which are surely PROs in their niche. Communication and PR has to be improved furtherly to keep the pace and ensure the success of this project.