The crypto industry's latest innovation gives traders exposure to exponential returns on ether, already prone to steep price swings. godbole17 reports
Say a trader purchases $1,000 worth of the Squeeth tokens. If the price of ether triples from $3,000 to $9,000, the Squeeth would go up triple-squared, or 9-fold – to $9,000 in this example.
Those costs still exist with Squeeth, but they're a bit tougher to see: The equivalent market price of oSQTH almost always trades above the Squeeth index, implying a premium – a de facto cost for traders who are going long. “Holding a long Squeeth position for an extended period during which ETH trades sideways or goes down in value will likely cause a loss in ETH-squared exposure of the long Squeeth position due to in-kind funding paid to short Squeeth sellers," Opyn’s Prospere told CoinDesk.
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London-Based VC Blossom Capital Raises $432 Million For New Crypto-Focused FundI joined Forbes as the Europe News Editor and will be working with the London newsroom to define our coverage of emerging businesses and leaders across the UK and Europe. Prior to joining Forbes, I worked for the news agency Storyful as its Asia Editor working from its Hong Kong bureau, and as a Senior Editor in London, where I reported on breaking news stories from around the world, with a special focus on how misinformation and disinformation spreads on social media platforms. I started my career in London as a financial journalist with Citywire and my work has appeared in the BBC, Sunday Times, and many more UK publications. Email me story ideas, or tips, to iain.martinforbes.com, or Twitter _iainmartin.
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