ZUG, SWITZERLAND – Nov. 21, 2018 – Horizon Globex GmbH, the company behind the Talketh STO for U.S. persons, announced today how their crypto tokens can be used as a vehicle that offers downside protection to cryptocurrency investors in these turbulent times.
As the crypto sell-off continues, cryptocurrencies versus USD plunge to prices, which haven’t been seen in 18 months. USD market caps of crypto “platforms”, such as VeChain, NEO and EOS all tumble in a similar fashion. Looking at crypto “businesses”, such as Binance and OmiseGO, their market caps have also plummeted in line with the fall of Bitcoin and Ethereum – the two kings of decentralized blockchain cryptocurrencies.
Crypto platforms and businesses, it seems, are not immune to a cryptocurrency sell-off, nor can they stand on their own two feet as fundamental operating businesses untethered to cryptocurrencies. Clearly, they are seen by the market as pseudo-diversification or mirrors of the two cryptocurrency kings.
Answering some fundamental questions, which investors may have, the CEO of Horizon Globex, Brian Collins commented:
Do stablecoins offer downside protection?
Demand for stablecoins goes up, since they are used as an exchange-trading-pair in the crypto sell-off. Whether stablecoins can be exchanged for actual USD by investors is debatable. However, for now, they are perceived by some, whether rightly or wrongly, as a safe haven in this crypto-bear era.
So how do I, as a blockchain investor, actually protect my downside?
Simply put, investors should find a blockchain business or platform security token to invest in which will achieve some of the following criteria;
(a) Generates fiat revenues, because companies that only generate cryptocurrency revenues will always peg their market cap to cryptocurrency.
(b) Has legitimate banking arrangements, because companies need to deploy investor cryptocurrency contributions as USD in order to build their USD business.
(c) Lists their token on a crypto exchange, because you need an investor exit.
Some investors who are worried about their cash and investments might be overwhelmed by the figures involved, so Brian Collins has broken down the math;
Consider that you invest $20,000 to buy 20,000 $1 tokens today for 150 ETH (at $133 USDETH) and then, depending on your desired return on investment, you offer your 20,000 tokens on the exchange for $2/each, a 100% return. In the interim, as the business generates USD revenues,
Scenario (A); Ether (USDETH) drops by 50% to $66; you sell your 20,000 tokens at $2 each and receive 606 ETH and cash-out to $40,000 at your preferred cryptocurrency exchange.
Scenario (B); Ether (USDETH) rallies by 50% to $200; you sell your 20,000 tokens at $2 each and receive 200 ETH and cash-out to $40,000 at your preferred cryptocurrency exchange.
Therefore, if you believe in a business’s fundamentals and management team, then investing your cryptocurrency may be a blockchain investment strategy that could eliminate cryptocurrency exposure and can be achieved by diversifying your cryptocurrency portfolio, or part of what you have invested in stablecoin, into a blockchain business that generates revenues.
Horizon Globex GmbH of Switzerland
Globex operates Talketh, a USD revenue telecommunications business whose exchange-listed ERC20 tokens can be purchased at https://banq.co/listings/vox.