First of its Kind Token Which Tracks the Ratio of Bitcoin to Ethereum Has Launched

written by

ETHBTC

Support free journalists: > send a tip

  • ETHBTC is an example of exotic financial derivatives which are made possibly by blockchain technology

The Universal Market Access (UMA) project has announced the launch of the ETHBTC synthetic token, which is a first of its kind token which tracks the price ratio of Bitcoin to Ethereum. Essentially, now traders can directly bet on the interplay between the Bitcoin and Ethereum markets just by trading this token, which could give rise to innovative new trading techniques.

Another reason that the ETHBTC synthetic token is the first of its kind is because it does not rely on price data from an oracle, rather it depends on a community-driven dispute mechanism in order to determine its value.

Ultimately, if ETHBTC gains some popularity, then this could herald a new era of exotic crypto derivatives products, such as the ratios of all other cryptocurrencies to one another. Although this idea sounds simple, derivative products like this are just not possible on traditional financial markets due to regulatory red tape.

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: Pixabay

Help spread this article :)

BitcoinNews.com is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of BitcoinNews.com

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by BitcoinNews.com to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of BitcoinNews.com 

   Advertisement

Read More Bitcoin News

   Advertisement

Join our Newsletter

   Advertisement

Latest on Bitcoin News

Video of the Week

Join our Newsletter

   Advertisement