Leverage Tokens, The Next Big Trend in Crypto: Amun Study Finds Almost 60% of Traders Neutral or Unsatisfied with Current Leverage Offerings
Short and leverage token issuer Amun Limited wants to fill gap in market and launch independent leverage tokens
- The Amun 2020 Derivatives and Tokens Benchmarking Survey finds that almost 60% of traders are either neutral or unsatisfied with the current derivatives market
- Amun is launching leveraged tokens based on the research that 78.1% of traders are familiar with these products which provide 3x and -3x exposure to Bitcoin and Ether’s daily returns
- Amun’s leverage tokens greatly improve the user experience, transparency, and safety from liquidation compared to alternative means to get leveraged exposure, with the study showing that 34.7% of participants found the typical margin call process unclear
17 June 2020 - Seychelles - The research team at Amun Ltd (https://amun.com/), the short and leverage crypto token issuer, has published one of the most extensive studies (https://blog.amun.com/amun-2020-derivatives-and-tokens-benchmarking- survey/) on the state of derivatives, leverage and short tokens to-date using data from a ground-breaking survey of 629 participants. The key finding was that 57.9% of participants were either neutral, unsatisfied, or very unsatisfied with their current experience of crypto asset derivatives. In addition, the research shows that 78.1% of crypto traders were familiar with leveraged tokens. Moreover, the survey reveals that there is a significant gap between the desires of crypto traders and the availability and abundance of instruments to fulfill such desires. For those that already trade crypto derivative products, only 28.8% of users were satisfied with the experience. Unsatisfied users identified bad user experience, confusing processes, and hidden fees as main pain points and noticeably 34.7% of participants noted that they found the process of margin calls unclear.
When users were asked about the level of leverage they would like to trade, the distribution was relatively evenly distributed across 2x (28.2%), 3x (22%), 5x (22.4%) and 10x (27.5%) with slightly higher preferences for lower and higher leverage levels, according to the results of the survey. Noticeably, users preferred underlying crypto assets for such leveraged tokens to be skewed towards BTC (25%) and ETH (26.2%), with other crypto assets having generated much lower interest from participants.
Based on the findings of the study, Amun officially launches four additional leverage tokens today, allowing users to conveniently implement their trading strategies on the largest two crypto assets — Bitcoin and Ether. Following the successful launch of the first token (BTCSHORT) last month, Amun leverages its experience from structuring and engineering institutional-grade products on the regulated market from its sister company 21Shares AG to provide the crypto community with additional carefully- engineered tokens which allow users to get notional exposure to daily price swings of Bitcoin and Ether.
From today, the trading crypto community can actively utilize Bitcoin and Ether with a 3x leverage both in long (Bitcoin 3x Daily Long and Ether 3x Daily Long) and short (Bitcoin 3x Daily Short and Ether 3x Daily Short) direction. These leverage tokens will be available for trading on HitBTC, Bitcoin.com, Bequant, and Liquid. For the more technically advanced crypto users, Amun provides a user-friendly interface (https://tokens.amun.com/) that allows anyone to mint/burn their own leverage tokens.
“If you have been active in the crypto space as long as we have, you can clearly identify the trends in retrospect. The difficulty is to identify the trend beforehand, which is why we dedicate significant resources to collect data on the needs and desires of the crypto community.” Hany Rashwan, CEO of Amun, says. “Once we have gathered enough data to confidently determine what products the market is missing, the real work starts. Our product team is working around the clock to bring more innovative products desired by traders and other crypto holders to market.”
Currently, the short and leverage token market is still in its infancy with very few key players dominating the market. FTX led the issuance of such novel tokens with the launch of their first inverse token in July 2019. However, users reported confusion on fees, issues with re-balancing, and other complaints, which ultimately led to Binance exchange delisting the FTX token in March 2020. One month after, Binance launched its own leverage token products, which provide a varying and not exact amount of leverage. Combined, Binance’s and FTX’s tokens produce around tens of million dollars in daily trading volume, which is only a fraction of the volume of other alternatives to short and leverage trade crypto assets. Notably, Amun is the only issuer to date which does not simultaneously run an exchange, thus, democratizing the issuance of these novel tokens.
Amun’s ETP sister company based in Switzerland, 21Shares AG continues to grow from investors’ demand and has issued and listed a total of 11 fully-collateralized distinct institutional-grade Exchange Traded Products (ETP) using cryptocurrencies as the underlying assets on three different stock exchanges in Switzerland and the EU.
About Amun Ltd.
Amun is the technology company behind the listed innovative inverse token BTCS. Its sister company, 21Shares AG, is the Swiss-based issuer of fully-collateralized, passive investment ETPs (trackers) of crypto assets. Amun has built a proprietary token platform technology to allow users to issue their own traded inverse tokens in exchange for stablecoins. All smart contracts are open-source for the benefit of the community. The Amun team consists of an experienced mix of engineers, product managers, and marketers with the sole mission to bring innovative and useful instruments to the crypto market.
This document has been prepared and issued by Amun Limited (“Amun”).
Crypto asset trading involves a high degree of risk. The crypto asset market is new to many and unproven and may have the potential to not grow as expected. Currently, there is relatively small use of crypto assets in the retail and commercial marketplace in comparison to relatively large use by speculators, thus contributing to price volatility that could adversely affect an investment in crypto assets. In order to participate in the trading of crypto assets, you should be capable of evaluating the merits and risks of the investment and be able to bear the economic risk of losing your entire investment.
Nothing in this document (or any other documents mentioned herein) is or should be considered to be an invitation to enter into an investment and is not intended to be an offering of securities in any jurisdiction nor does it constitute an offer or an invitation to sell shares, securities or rights belonging to the Issuer or any related or associated company. This document has not been registered with or approved by any regulator in any jurisdiction. The information provided does not constitute a prospectus or any offering and does not contain or constitute an offer to sell or solicit an offer to invest in any jurisdiction.
Readers are cautioned that any historical performance information or forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results or performance may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax, or other advice and users are cautioned against basing undue reliance, investment decisions or other decisions solely on the content hereof.
Any historical performance included in this document may be based on back testing which is a means of evaluating a particular strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested performance is purely hypothetical and is provided in this document solely for informational purposes and neither represents actual performance nor should it be interpreted as an indication of actual or future performance.
Neither Amun, nor any affiliate, nor any of their respective officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.
The Tokens are complex products which incorporate a high degree of risk and should only be bought in or traded in by persons with appropriate technical knowledge who have experience with similar products.
The Tokens are not available for purchase by individuals or entities who are ordinarily resident in the United States, Switzerland, the Seychelles or any other country on the Prohibited List. The Issuer reserves the right to restrict the sale of the Tokens in any jurisdiction or to any individuals or entities from time to time.