Bithumb Global Launches New Smart Token: BTCS
In the current scenario, where the interest in digital assets is reaching unprecedented levels, fintech companies are creating innovative solutions to allow investors and traders to leverage the awesome potential of digital assets. Bithumb Global, a Top 10 globally ranked digital assets platform, according to CoinMarketCap and CoinGecko, and one of the fastest growing exchanges since 2019, has developed “Smart Tokens,” a fintech innovation that is fast becoming a go-to for many crypto enthusiasts. Smart Tokens are Bithumb Global’s answer to ETF tokens and their return mechanism is similar to that of ETFs in traditional financial markets.
Bithumb Global recently launched their smart token BTCS, along with ETHS, XRPS, LTCS, BCHS, BSVS and COMPS. The yield rate of BTCS is pegged to the underlying asset BTC and others respectively, also to their core token worth.
Unlike regular tokens or coins, they are specific to Bithumb Global users. A formula is used to calculate the prices continuously, thus keeping the trading balance. Because of these characteristics of smart tokens, it is possible for anyone to buy or liquidate them with astounding ease.
Defining Features of Smart Tokens
More crypto exchange platforms are coming forward with their own smart tokens. Here are some basic characteristics of smart tokens to understand how they really work:
- A smart token can be purchased by just about anyone. This can be done by buying it, based on its current value. Interestingly, the added benefit of a smart token over other kinds of tokens is that owners are hedging against where you foresee the price will go.
- Smart tokens control their own prices which are tied to the actual token worth they carry.
What Do Smart Tokens Mean to these Times of Change?
As the world is locked indoors during a pandemic which doesn’t seem to have an end, the one word which defines every scenario today is uncertainty. The same is also visible in all forms of traditional markets. The chaos that the world has witnessed has driven the point home that disruptive innovation is needed to provide its security and stability. Smart tokens offer one such solution.