LedgerX Crypto Platform Releases New Financial Product
LedgerX, a crypto company from the United States, reported on its blog about a new derivative contract, which it called unique in relation to bitcoin.
The solution is called LedgerX Halving Contract (LXHC). It can be compared to a binary option, while the payment here is either definite, or is not provided at all and is calculated when bitcoin is halved.
This occurs approximately one time every four years. Consequently, the number of new bitcoins mined by crypto miners is reduced by half. This happened last in 2016. Then the miners' remuneration was reduced from 25 to 12.5 bitcoins.
LedgerX representatives explain that its derivative contract will make it possible to receive a predetermined amount of payment if the halving on block 630 000 occurs prior to the specified deadline. In case the block is found later, the contract resets to zero. The next division by half should occur presumably at the end of May 2020.
LedgerX cites the example of the oil company Exxon Mobile. Everyone knows about reduction in the amount of oil produced by it by half in 2020, but no one knows the exact date. This state of affairs will have a certain impact on investment decisions and other financial transactions. Miners of the first cryptocurrency face similar risks every four years, seeking to get an award for a mined block.
As previously reported, the LedgerX crypto platform launched a new index that allows to track bitcoin volatility.