PRESS RELEASE. Flynt Finance, the cryptocurrency monetary companies firm based mostly in Singapore co-founded by earlier derivatives alternate operators and analysts, launched a platform for crypto structured merchandise final week. The comparatively excessive returns (as much as 50% APY) on Flynt has gained robust curiosity from crypto yield fanatics, particularly through the bear market the place volatility is more durable to return by.
Cryptocurrency markets are sometimes regarded as the go-to place for high-risk high-return because of the unstable worth actions. Managing danger for such belongings could be advanced, particularly for people who don’t have a monetary background.
A well-liked strategy to hedge is to make use of choices by getting into into positions reverse to present asset holding. For instance, holding spot bitcoin and shopping for a put choice once you anticipate some downward worth motion. Though nonetheless a nascent area in comparison with perpetual futures, crypto choices are a good way to hedge your unstable positions each throughout instances of chop and powerful traits.
There are additionally varied structured merchandise that present yield with mixed methods of choices, lending, and futures. One of many easiest and hottest structured merchandise is the lined name technique or a money lined put technique. Even the legendary Warren Buffet has famously used this to earn premiums on Coca-Cola shares.
Since 2021 there was a rush to supply lined name methods on varied cryptocurrencies for the yield-hungry crypto buyers. These methods have been rising quickly since their inception and have held up surprisingly effectively through the newer downturn.
After rigorous analysis and backtesting varied methods, the group at Flynt determined to launch their very personal structured product technique, the “BTC Coated Name Technique x5”. This technique sells name choices on a weekly foundation and reinvests the premium earned into the next week. Primarily based on the complete 3-year set of buying and selling knowledge from Deribit (a number one cryptocurrency choices platform), the group derived a proprietary strike worth choice algorithm that maximizes returns and minimizes the prospect of taking a loss. A key differentiator for Flynt’s product is its use of leverage. Flynt makes use of as much as 5 instances leverage on their methods to each improve the returns in addition to lower the prospect of taking a loss by deciding on an additional OTM strike worth. In keeping with their backtests, this resulted in a mean APR of 47%(together with losses) in comparison with the trade common of about 15%(not together with losses).
David Website positioning, CEO of Flynt Finance mentions that “for most individuals, a non-leveraged lined name technique needs to be simply fantastic, however for people who wish to take extra danger for increased returns ought to positively give Flynt a strive. By way of Flynt, we goal to offer entry to crypto funding methods for a wide range of danger profiles.”
About Flynt Finance and the Crew
Flynt Finance is a one-stop asset administration platform that gives structured merchandise on cryptocurrencies. The group is made up of blockchain OGs which have expertise delivering a variety of companies together with cryptocurrency exchanges, blockchain protocols, and dApps collectively since 2015. Flynt’s CEO, David Website positioning was the COO of a number one South Korean alternate, and Victor Park, the CTO has been constructing sturdy inventory and cryptocurrency buying and selling platforms for the previous 20 years. Different core members have in depth expertise in varied fields together with monetary massive knowledge modeling, asset custody companies, derivatives buying and selling, and buying and selling structured merchandise.
Flynt’s group started the brand new initiative with a daring mission to offer monetary freedom to everybody no matter geography, know-how, and privilege.
To make sure clear communication to the purchasers on how the deposited funds are used, each technique executed by the group could be discovered on Flynt’s web site intimately.
At present offering bitcoin covered-call methods that generate as much as 50% APY, Flynt plans to proceed to fulfill the wants of the ever-evolving crypto investor by way of modern merchandise.
This can be a press launch. Readers ought to do their very own due diligence earlier than taking any actions associated to the promoted firm or any of its associates or companies. Bitcoin.com isn’t accountable, instantly or not directly, for any injury or loss triggered or alleged to be attributable to or in reference to using or reliance on any content material, items or companies talked about within the press launch.
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