Not exact matches
Firstly, ICOs provide efficient and low cost funding
to promising start - ups or early - stage projects that is accessible
to any participant across any geography reducing their entry barriers; secondly, they provide an investment opportunity in a new and disruptive technology
to gain on future potential of blockchain while allowing the participants
to diversify their current
exposures in
cryptocurrencies along with
high liquidity.
In addition, they can also be spontaneously destroyed due
to their over-collateralisation, which has a
high loss
exposure in the case of a
cryptocurrency market crash.
These contracts allow people
to speculate on assets at
high leverage, or alternatively protect themselves from
cryptocurrency volatility by canceling out their
exposure, without any centralized exchange.
And while he's got
exposure to the main digital coins, he likens the digital tokens being issued in upcoming ICOs
to small - cap stocks —
high growth potential coupled with
high risk — making them an interesting way
to play the
cryptocurrency markets.
High profile Australian investors will soon be able
to get
exposure to cryptocurrency in a way more familiar
to them than currently available.