Dear Hoo users,
In memory of the 11th anniversary of genesis block of Bitcoin, Hoo.com is to launch TBTC, the insurance right of BTC. The subscription of TBTC will be enabled on the Hoo Option (previously Hoo Power) page on Jan. 3.
Total amount: 50 TBTC
Mode: First come, first served
Benchmark price: 0.095 BTC
Exercise price: 7,500 BTC
Time: 16:00 on Jan. 3 - 16:00 on Jan. 4 UTC+8 (24h)
Cion accepted: BTC (wallet account)
Exercise time: 16:30 on Jan. 31 - 24:00 on Jan. 31 (UTC+8)
Requirements: KYC completed; VIP1 above
Listing arrangements: TBTC7500/USDT trading pair will go online at 19:00 on Jan. 4 (UTC+8)
TBTC is a 27-day insurance right token of BTC which is tradable. Traders who hold TBTC are allowed to exercise their insurance right in 27 days (on Jan. 31). With 1 BTC + 1TBTC, they can receive 7,500 USDT on the day. After which the TBTC will become invalid and will be delisted.
What is the insurance right of BTC?
The insurance right is another initiative of Hoo after refund right, mining right and gain right. The nature of insurance right is a put option. The target of the insurance right is the market price of BTC. Users who hold the insurance right token (TBTC) can sell it at an agreed price to Hoo.com in the future. TBTC can be circulated in the trading market. Those who hold an equivalent amount of BTC and TBTC can exercise their insurance right.
If we purchased one TBTC with an exercise price of 7,500 USDT at the cost of 0.095BTC (i.e. $648), and the BTC price dropped to 6500 USDT on the day of exercising, we can get 7,500 with 1 BTC+1 TBTC.
In this case, the cost was $6500+$648 = 7148 USDT. We could earn 352 USDT by exercising the insurance right.
Advantages of Hoo Insurance Right:
To hedge the risk of price dumping by purchasing an insurance for BTC and to gain extra profits when the price drops.
- Traders who want to buy the dips
- Holders who predict that the price will go down;
- Miners who have abundant assets.
More assets right innovation, all at hoo.com.
Jan. 2, 2019