Fundamental Interactions Launches Automated Token Hedging Platform
Enterprise market center technology developer Fundamental Interactions has launched a proprietary, automated hedging platform for tokens. According to an announcement provided to press, this technology is designed to jumpstart liquidity in new token exchanges.
This is a press release provided by TransformPR
Fundamental Interactions Rolls out New Service to Provide Liquidity to Token Exchanges
Fundamental Interactions reported its new service allows automated markets to refactor quote feed from external sources and supply continuous liquidity. The technology already has a real-world user, with Velocity Ledger committing to use the service in Bermuda.
This automated service operates in two different ways. First, an”auto-quoting” feature will pull bid-ask quotes from external data sources as a way to create liquidity. Then, the “auto-hedger” service will liquidate the best positions brought in by the auto-quoting feature.
While it is compatible with any asset, Fundamental Interactions said it built this service with tokens in mind.
“The ability to generate instant liquidity. . .for digital asset tokens that are actively trading in other markets is an important avenue,” said Fundamental Interactions president and chief operating officer Julian Jacobson.
This news comes on the heels of an explosion of token trading in 2018. With a huge surge in interest surrounding ICOs — along with the SEC’s ruling on security vs. utility tokens — a multitude of token projects emerged, trying to create a profitable market.
Thus, a system such as Fundamental Interactions’ auto-heading service may give token traders and issuers alike access to a liquid market. And if Velocity Ledger’s implementation of the service is successful, we will know for sure that the crypto world will gain at least some value from the technology.
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