LTC Miners will Get Hedging Products From Litecoin Foundation And Metalpha
As part of its ongoing efforts to develop sustainable mining solutions for Litecoin’s ecosystem, Metalpha Technology Holding Ltd (NASDAQ: MATH) on Friday announced it will work with Litecoin Foundation.
Litecoin foundation is a non-profit that creates and maintains products for its namesake blockchain.
In addition to developing derivative products, the partnership will facilitate renewable energy usage, improve energy efficiency, and lower carbon emissions from mining Litecoin.
Besides developing financial derivatives for LTC tokens, Metalpha also aims to help crypto miners mitigate market risks and reduce their environmental impact.
The strategy of hedging involves taking an opposite position in a related asset to offset losses in investments.
Bitcoin and Litecoin mining are proof-of-work blockchains, which rely on powerful computers to process and validate transactions. Miners are rewarded with network tokens, which are typically sold on the open market to cover large costs and turn profits.
However, a drop in cryptocurrency prices has resulted in miner churn because they are unable to convert the high costs. This is where hedging comes in, allowing miners to continue operations while still earning money regardless of market fluctuations.
Meanwhile, Metalpha and the Litecoin Foundation announced that they will collaborate with universities and research institutions to promote long-term blockchain innovation, public education about the Litecoin network, and network awareness, adoption, and scalability.
Visit Bitdenex Exchange to Buy and Sell crypto in minutes with low trading fees.