Crypto Firm Accused of Fraud, Duping Investor Into Buying $2 Million in Tokens - BITCOIN NET MAGZ

Crypto Firm Accused of Fraud, Duping Investor Into Buying $2 Million in Tokens

- 21.30

United States-regulated trading and clearing stage LedgerX has released a new sort of derivative contract special on Bitcoin (BTC),'' according to a blog post published on Feb. 5.

The brand new product named LedgerX Halving Contract (LXHC) signifies a binary choice -- a option where the payoff is a fixed monetary amount or nothing -- which settles to the estimated next time that Bitcoin halves.

Bitcoin halving is an event that happens approximately once every four years, and the quantity of fresh Bitcoin generated and earned by miners will probably be cut in half. The last time Bitcoin halved was 2016, when the reward decreased from 25 BTC to 12.5 BTC.

LedgerX clarifies that the new derivative arrangement,"can allow you to acquire a fixed payoff if the next halving block (Number 630,000) occurs before a particular time and date. In case the block is found afterwards, the arrangement expires ."

While binary choices are traditionally known as gambling since they're basically a"yes/no" bet, the article points out that the uniqueness of Bitcoin in that"there's a basic economic threat that is binary." LedgerX states:

    ". . .imagine you are an oil producer like Exxon Mobile and understand that 1 day in 2020, the amount of barrels of oil that you extract will go down by half an hour, indefinitely. But you are not certain which date which will be. This would materially impact planning for investment and operations. Bitcoin miners confront this specific risk about every four years for the block reward that they earn."

In January, LedgerX launched its first Bitcoin cost volatility indicator dubbed LedgerX Volatility Index (LXVX). "The LXVX comprises the level of dread and uncertainty from the Bitcoin marketplace, and consequently can be considered as the"bitcoin fear indicator," in the identical way the VIX is often referred to as a stock exchange fear index by market commentators," the company explained.

The job is supposedly designed to simplify BTC option trading to a simple point-and-click format, therefore"less complicated" bull traders can purportedly potentially receive a premium price on their holdings.

 

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