February 13, Bloomberg published an article that, in an attempt to survive a protracted downturn in the market captainvalor and miners are now referring to such derivatives, such as options.
An article in Bloomberg talks about the growing popularity of sophisticated shopping tools that allow you to earn in the short term, and also about the difficulties of survival during the longest in the industry a “bear market”.
CEO Alameda Research Sam Bankman-fried of San Francisco said in an interview with Bloomberg:
“Those companies who were sitting on bags of tokens during the bear market in 2018, realized that their business depends on the price of cryptocurrency. In case of a fall digital assets for survival it is important to have some money.”
Bloomberg said that the number of experienced financial professionals in the cryptocurrency market increases, and therefore, the range of trading instruments is becoming more diverse. For example, the Singapore cryptocurrency firm QCP Capital announced that recently acquired a three month option with a value equivalent to 250 bitcoin (about $900 000).
Strike price this contract was set at $4200, and if bitcoin will trade below that level at the time of expiry of the contract, the contractor QCP will receive a prize of $666250 and keep their assets in bitcoin. If by April bitcoin will trade above $4200, then the counterparty will be required to sell their QCP 250 bitcoins at this price and to waive any profits.
Bloomberg said that many of these derivative contracts are private bilateral agreements, and therefore the official statistics is rather scarce. However, in his article, the publication claims that due to falling market prices, the miners have become one of the main sellers of derivatives similar to covered call options.
Bloomberg also warns that in many cases the transaction of representatives of kriptonyte with former skilled employees of wall street can be akin to “swimming with sharks”, given the rich experience of the representatives of big business.
One of the former traders at Citigroup, who is now engaged in mining, said:
“The miners better be on the alert, as professionals trading can try to circle them around your finger, forcing you to sell the options are too cheap.”