Futereum In The News With Launch of Ether (ETH) Derivative FUTR
Crypto Investors Mine Almost 10,000 FUTR In First Week
Futereum, a Blockchain Bank that is being established by The Futereum Foundation, a not-for-profit blockchain-based financial engineering organisation, has been making headlines with the launch of its flagship product FUTR.
Crypto Ninjas, a mainstream crypto news site, picked up on the very ominous timing of the launch of FUTR, which is the first ever derivatives contract in utility token form. FUTR came to market exactly the same night that ETH, which it is a derivative contract for, passed $1000 for the first time and noted that investors were rushing in to get in on the action as a result:
What gives the FUTR a unique payment utility is that as the levels of the smart contract advance, less FUTR per ETH mined are distributed to the miners. This pushes up the cost of mining FUTR and compounds the effect of any price rises in Ethereum. As if to highlight this, when the developers wrote the White Paper, FUTR mining costs were $6.58 per FUTR whereas at the point of the product launch they had already risen to nearly $12 in value.
Days later, the market tanked. As if to illustrate the power of FUTR as a versatile market instrument, an inherent trait of derivatives products, another news agency pointed out how the token was the perfect market “hedge” in such circumstances.
Friday, Cryptocoins News reported that FUTR was “the perfect crypto hedge for [bear market] investors this week. Tuesday, as markets sold off across the board, FUTR was snapped up by ETH holders looking to get in on the diversified action of owning Ether and FUTR.”
The publication quoted one of Futereum’s Asia-based advisors:
“It’s a full fledged derivative,” Daniel Oon, an advisor for the Futereum Foundation and founder of Nodex Capital, a Singapore-based cryptoasset investment fund. “FUTR is actually a derivative (at mechanism level), but can be the “answer” to many of ETH problems. It’s weird to view a derivative as a stablecoin, but it can actually work.”
CCN also noted how investors in the organisation’s lively Telegram channel were talking up FUTR too:
“FUTR is the best savings account since I can’t sell all my ETH right now,” commented Eric Obrien, a crypto investor, in the Futereum Telegram group
… “Derivatives should hedge risk when it market crashes like its doing now or leverage as it’s going up,” explained Sam C., another big FUTR buyer, to the foundation’s Telegram group chat this morning. “It’s good I bought in and my losses will be minimized.”
The Cryptocurrency Journal’s Maddison Sullivan broke the story in an exclusive news feature that FUTR was being eyed by fund managers looking to make more sophisticated bets this year:
In addition to the private funds, the foundation is in late-stage talks with a couple of major cryptocurrency exchanges about listing FUTR. It intends to list FUTR on three exchanges in 2018, with the first listing scheduled for February 2.
FUTR will trade alongside a number of other crypto pairs, but not against ETH. This, claims Hurst, will result in a constant arbitration of FUTR-ETH value, whereby the exchange listing price can never quite match the same price as the one at which it is mined in ETH due to the alternate crypto pair that lies between the value of exchange-traded FUTR tokens and ETH.
