DeHedge Aims to Shield ICO Investors from Major Risks, Volatility and Pump and Dumps
The market for initial coin offerings (ICOs) has boomed, but with great reward comes greater risk. DeHedge is here to protect investors’ money from exchange rate volatility, scams, and other unfortunate events that may lead to losses.
Data indicates that about 46% of all ICO projects launched in 2017 failed, and ICO investors lost over $300 million during the first ten months of last year. While this sobering fact may dispel the illusion that ICOs are a quick and easy way to get rich, it should not discourage people from seizing the investment opportunities these events create.
Potential investors need to understand that despite the similarities between ICOs and IPOs (initial public offerings), the crypto economy has a different structure and seriously lacks regulation. There are no brokers, hedge funds, and investment banks as underwriters. All of this results in significant risks, which DeHedge aims to mitigate.
An essential tool for solving the problem of risk is hedging, meaning that an investor will open an opposite position in another market when hedging a transaction. The DeHedge project is creating hedging tools for the cryptocurrency and ICO markets.
Here are the DeHedge advantages in brief:
- Protecting ICO investment
- Shielding from exchange rates volatility
- Safeguarding against post-listing pump & dump schemes
- Attracting new investors to the projects
- Retaining profitability of investment funds
"Hedgers are provided with the opportunity to hedge their investments against fluctuations in cryptocurrency and token prices," comments Mikhail Chernov, founder and CEO of the project.
"Reducing the risks also lowers the potential profits. In case of a hedged event, an investor shall be reimbursed their investment less the hedging premium. The investor's maximum loss will, therefore, be equal to the cost of the latter. We are hedging several very promising ICOs in a few weeks. This means you can invest in these ICOs (buy their tokens on our platform) and if the rate of their tokens falls below the cost of placement, you will get a payout. In addition, the DeHedge MVP will be ready in the coming days and soon it will be possible to buy hedged tokens for the first time ever on our platform".
DeHedge will essentially act as a hedging and an investment company. The platform created by the project team will become the place where financial and hedging technologies are combined.
DeHedge ICO details
The Pre-Sale stage of the DeHedge ICO starts on March 15, 2018 at 11:00 UTC. During this round, early bird investors will get a 25% bonus. The hard cap for the pre-sale is $3 million. The subsequent ICO round has a hard cap of $30 million. The sale of DeHedge tokens will create a cash reserve of hedging funds to serve as collateral for payments due for a hedged event.