• by Michael Chernov
  • May 14, 2018
  • 0


Pioneering project DeHedge set to securitize cryptocurrency market with its risk-hedging platform

Blockchain fintech company DeHedge, established by Skolkovo graduates and successful investors from Russia: Michael Chernov, Bogdan Leonov, and Dmitry Ansimov are poised to be the first on the global market to provide securities and insurance services to back cryptocurrency projects worldwide.

The risks involved in investing into a lucrative ICO are many of which are ambiguous. An almost complete lack of government control, bylaws, regulations or established guidelines makes it difficult to distinguish sound investment from a fraudulent project. The crypto market is different from traditional economics as it lacks brokers, underwriters, sureties, banks and hedging instruments. This lack of intermediaries and pillars of stability automatically creates a paralyzing effect of distrust and robs market players of the instruments they require to ensure the safety of their investments.

DeHedge operates both with pre-ICO and circulating token projects, to ensure the security of its clients. DeHedge evaluates ICO projects using a unique scoring model developed by DeHedge in collaboration with one of the largest consulting firms.  An investor receives a risk coverage for various cases, such as a project cancellation or token exchange rate fluctuations. DeHedge’s smart contracts use a binary relation algorithm based on insurance reserves and liabilities, thus making it impossible for the latter to exceed the coverage. The smart contracts are programmed to automatically pay out in full. In case of an insured event as the project uses Ethereum, which is a public blockchain the investor can waive an automatic payout and opt not to make an insurance claim.

DeHedge is aimed at becoming a hub of interest for investors by providing investment securitization and hedging of risks and by offering a full-cycle derivative platform with different risk-hedging instruments in the future. Those seeking to join the ever-growing token market have always been uncertain of the safety of their investments – a point of great interest that DeHedge seeks to satisfy by emerging as a pillar of stability on the volatile market.

DeHedge offers hedging options, under which tokens are provided with limited timeframes of hedging, as well as price ranges. The obligation of a client to acquire another project’s tokens in case of an insurance event allows DeHedge to fulfil insurance conditions with minimal risk of liquidity and stability both to itself and the client.

The comprehensive risk-hedging contracts and sound investment strategy backed by significant investments already guaranteed ensures that DeHedge can provide entirely deregulated cryptocurrencies market with an instrument that the participants require.

DeHedge also serves as a launchpad for ICO projects by guaranteeing trust in the stability of their offering, thus ensuring an influx of investors inspired by the guarantees already backing the project. This general atmosphere of trust simultaneously provides for reducing risks and attracting investments into the ICO market. Needless to say, a measure of guarantee on the market is sure to boost blockchain technology development, driving massive changes in worldwide business processes and the global economy as a whole.

Having garnered great interest in the domestic and overseas markets already, DeHedge is certain to appeal to the players of the volatile and deregulated market of crypto economics. As recent events have shown, the alienation of cryptocurrencies by many jurisdictions has not had a significant deterrent effect to sway investors as they continue pouring funds into ICO projects worldwide. Though progress is unstoppable, the novel market in its infancy stage is in need of securitizes and DeHedge is poised to capture the important niche, joining effort with its partners (Priority Token is one of them).

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