Bithumb Global, a Top 10 globally recognized digital assets platform, has developed “Smart Tokens”, a fintech innovation that is expected to quickly become a go-to for crypto enthusiasts. Bithumb Global came up with Smart Tokens by keeping in mind the ETF Tokens, which holds a similar return mechanism in traditional financial markets.
Recently, Bithumb Global has launched several smart tokens like BTCS, BCHS, LTCS, COMPS, XRPS and ETHS. Unlike regular coins, these are specifically for Bithumb Global users. The prices are regularly calculated with the help of a formula which keeps the trade balanced. They can be easily bought or liquidated due to the smart token feature.
Prominent Features Of Smart Tokens
Many cryptocurrency platforms are launching their own smart tokens which comes with the benefit of controlling their prices which will be tied to the actual token price. A smart token can be purchased by anyone based on its current value, and it is expected that the prices will go up in the future.
What is the Role of a Smart Token Currently?
As the world is facing a lockdown due to the ongoing pandemic, the development is the traditional market is uncertain. Smart tokens offer the solution by providing security and stability to the chaos that the world has faced through innovation.
This pandemic has made the value of the currencies quite unstable and a smart token with high liquidity and stability at this time comes as a blessing. The future may be driven by a revolutionary type of tokens which will not depend on a central authority, exchange or any third party.
How are Smart Tokens better than the Traditional ETFs?
Similar to mutual funds, Exchange Traded Funds (ETFs) are used to store s collection of securities like stocks that track an underlying index. Based on their purpose, they can be invested in various industry sectors or strategies that can be applied to them.
Smart tokens are cost-effective– Bithumb Global smart tokens are much cheaper than the others. There is no involvement of extra cost with smart tokens other than the management fees, which are deducted from the smart token net value.
Smart tokens rarely face liquidity crunch– Smart tokens do not depend on the trading volumes, unlike the ETFs, which are more liquid than mutual funds, which affects them by edging of their liquidity.
Smart tokens are less risky– Smart tokens have the advantage of predicting the amount of slippage before carrying out a transaction. Bithumb smart tokens can be purchased by anyone at any time without the involvement of a third party, which eliminates the amount of risk involved in the process.
Smart tokens do not fluctuate– The contract of the smart tokens help in maintaining the price between a smart token and its pegged coin, which makes sure that there is an original, real-time price associated with the purchase or sale of a smart token.
ETFs are traditional securities that can be traded on an exchange like stocks, and smart tokens are a much better, secured, cheaper and digitized version of ETFs.
About Bithumb Global
Bithumb Global is a digital asset launched for meeting diverse use of users around the world. It provides a wide range of services including digital asset exchange, blockchain project incubation, digital asset issuance and decentralized finance.
For more information, visit: https://en.bithumb.com
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