Introducing BITRUST: the first cryptocurrency insurance platform
A story of BITRUST started with a problem which gathered a team of blockchain enthusiasts to solve it — to have an affordable tool for hedging cryptocurrency trading transactions. And it is true, with the altcoins market volatility we have faced these few months it is obvious that everything is ready for such product to come about. In this blog we will tell in more detail about what BITRUST offers and why it is needed.
Altcoins are highly volatile — the total market cap hyped by 10,000% starting in 2013 and right up until its downturn this January. Moreover, how extremely complex it is to forecast these market fluctuations! And this is exactly why the market was calling out for something like BITRUST — to solve the real issue of altcoin volatility for small and medium investors and cryptocurrency enthusiasts.
“On one hand the market volatility is skyrocking, and on the other — the interest in cryptocurrencies and the value behind blockchain technology is really growing. More and more people talk about it everyday. It means that already this year a lot of people will want to join the movement, learn more about crypto world and also participate in its development. We are looking at the few year long market adjustment and growth period ahead of us and we believe that BITRUST is the type of project which will heavily contribute into such adjustment,” says company’s CEO Alex Duhamel.
“With BITRUST you don’t have to accept all the risk when trading altcoins. You can easily mitigate it, moreover — in a convenient fashion and at an affordable price. Imagine you could have such possibility to do this now?!”
BITRUST is a peer-to-peer Ethereum-based, decentralized cryptocurrency insurance platform. Each smart contract can involve two or more parties and it works like this:
For example, I’d like to ensure against ETH (with a value of $100) dropping in price by 30% against BTC for a period of 96 hours. I am willing to pay in digital currencies an equivalent of $5 as an insurance and claim an equivalent of $15 in case the price drops to $70 or below. My counterpart then has to agree to these proposed terms or make a counteroffer proposing slightly amended terms.
Then we lock our agreed sums in a BITRUST smart contract. I lock an equivalent of $5 (insurance cost) and my counterpart locks an equivalent of $15 (insurance body). The total BITRUST smart contract then will be equivalent to $20.
In 96 hours, if the ETH token drops by 30% against BTC, the BITRUST smart contract executes a pre-agreed deal and sends the equivalent of $20 to me: $5 of insurance fee plus $15 of the actual insurance body. In the opposite case, the equivalent of $20 is sent to the other side.
The buyer and the seller of insurance both lock their funds in BITRUST tokens (BTFs) or a certain set of other cryptocurrencies that will be permitted by BITRUST platform. However, there is a great motivation to use BTFs in particular.
BITRUST business model
The company intends to provide real value for holders of BTFs on the secondary market and reward early investors. That is why they will charge a fee of only 0.1% against a total amount locked in a BTF smart contract (in case of our example above it would have been 2 cents) only when the entire deal is conducted in BTFs. This is a discount of 80% of the regular fee — isn’t it a strong incentive to use BTF tokens?!
Read more about the BTF value, token allocation and projected financials in BITRUST white paper.
BITRUST philosophy is simple — to be fast and flexible, open to feedback and making sure the company has the extraordinary team of professionals to design a product offering a flawless user experience.
Company’s Head of Operations Arthur Lots puts it in his own words: “For us these words really mean a lot. It’s not just about being flexible — it’s “be flexible or die”. It’s not just about being open — it’s knowing that feedback is priceless. When you build your company from ground up and you really invest in each and every inch of its growth, you don’t compromise. You just can’t.”
At its disposal BITRUST has it all — professionals in cryptocurrency, insurance operations and compliance, blockchain and peer-to-peer technologies, artificial intelligence, internet marketing and economics, politics and public relations. The management team has already achieved several milestones such as having all infrastructure in place to develop the BITRUST platform, including headquarters, IT support and hiring a top team of software developers.
“I really would like to talk more about our people here. This is the team which has proven itself on developing other projects. As the leadership core of BITRUST is comprised from serial entrepreneurs from different sectors like finance and banking, trading and strategic business consulting, we were able to gather a team from the experts we have known and worked with before. They might not be the people who have immediate recognition on the internet, however they have more than that — ability to work with the utmost focus and commitment on the product, which will change cryptocurrency trading as we know it,” Sergey Silin, the company’s CTO gives a vote of confidence to his team (we have introduced some key developers previously, you can also find information about the whole team here).
BITRUST is a vocal advocate of building a community around each blockchain product. They’d love to get your opinion and communicate with everyone willing to start a discussion. So, do not hesitate to join BITRUST Telegram channel and ask more questions if you have any.
To finance the development and launch of the BITRUST platform, a limited-supply sale of BITRUST tokens (BTFs) will be created by BTF Project Limited. The sale will start on 5th of March — see more information about the BITRUST ICO structure and the company here.