The global economy was formed and developed during the development of human society to the stage of capitalism, and is the initial form of international economic relations, the international exchange of goods. At present, the financial markets and stock exchanges are basically centralized. The main drawback of centralized exchanges is that there is a third party acting as a custodian, who handles the assets and data of the users. For instance, the New York Stock Exchange employs a third-party custodian to manage investors’ assets. This situation raises several drawbacks: first of all, investors have no control over their assets, which means that their assets can be frozen without their consent; secondly, these assets are under the control of a centralized entity and are therefore an easier target for hackers.
Armed with technology, investors regain control over their assets and are able to eliminate unnecessary intermediaries, which not only charge high fees, but are also highly vulnerable to hacking or at risk of mismanagement.
Blockchain technology has distinct advantages in the financial sector owing to its transparency and trustworthiness. Any information on the blockchain can be viewed by all parties at the same time, regardless of other variables such as the speed of the Internet. Moreover, the blocks are time-stamped, which can prove the timeliness of the relevant information at any time. Undoubtedly, this innovation will change the way information is disseminated in the financial system.
Since the introduction of Bitcoin in 2009, the cryptocurrency market has only been in the early phase of development, compared to the traditional stock and securities market, which as yet has been growing for decades. The immaturity of the cryptocurrency market in many ways is a constraint to the further convergence of the cryptocurrency market to the scale of traditional financial markets. This is particularly evident in the liquidity management deficiencies of cryptocurrencies.
High liquidity is crucial to the growth of cryptocurrencies. For cryptocurrency users, high liquidity is an important indicator of a good trading experience for that cryptocurrency. The more liquid a cryptocurrency operates, the more diversified and transparent it will be, which in turn will provide higher liquidity to the market. Based on this, Molecular Future will launch a cryptocurrency liquidity management business to provide users with comprehensive liquidity management services on a global scale, including spot trading, contract trading, data analysis, cryptocurrency financing, crypto asset management, and so on, to become a PrimeBroker in the cryptocurrency market, or more specifically, the MarketMaker role in the traditional financial industry.
Molecular Future is committed to building a global one-stop digital asset investment service platform, focusing on deep exploration of value applications, technology development, digital asset management and other directions in the blockchain field. Currency Increase is one of the main functional sections of Molecular Future APP, which is already available online. So far, Currency Increase has issued more than 30 fixed, current, hedge and quantitative funds, covering the three mainstream coins of BTC, ETH and USDT, which can fully meet the needs of users.
One of the highlights of Currency Increase is the ability to tailor investment solutions for users according to their needs. In order to present customers with a richer range of financial products, Currency Increase introduces hedging and quantification in addition to fixed-term and current funds. “Hedging” refers to an investment that deliberately reduces the risk of another investment. It is a way to reduce business risk while still making a profit on the investment. Generally, hedging is the simultaneous execution of two transactions that are correlated, opposite in direction, equal in quantity, and offsetting in profit and loss. The real purpose of “hedging” is to preserve the value of assets and reduce risk fluctuations, so that investors do not end up in the worst possible situation, rather than to maximize the benefits or profits. After all, Warren Buffett has stated that, to make money in the stock market, only when the principal is preserved will there be a chance to make more profits.
Hedging is a complex investment that requires great familiarity with all the varieties available for investment worldwide in order to find varieties and opportunities that can be hedged. Individual investors who are not familiar with hedging have no need to hedge, and can simply select the hedging products you need in the Molecular Future APP. Molecular Future has launched several hedge fund investment programs, and all of them maintain 100% zero loss and high returns. Six hedge funds have been settled by the first half of 2019. The lock-up time for each of these six settled hedge funds of Currency Increase is 3 months, with an average annualized return of nearly 50%. It can be said that the hedge products, as a quality choice of “cryptocurrency financial supermarket”, are already sold out in the platform, and we kindly hope that users who are looking forward to the hedge products on sale here can stay tuned for it! MOF will introduce richer financial products for users through its professional manner and ability.