Base Protocol (BASE)

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Base Protocol (BASE) Review

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The Base Protocol The Base Protocol (BASE) is a synthetic crypto asset that derives its price from the total market cap of all cryptocurrencies (cmc) at a ratio of 1 : 1 trillion. BASE exists to maintain a market rate that is stably pegged to its underlying asset – the crypto industry. BASE’s peg to cmc is held stable through an elastic supply protocol.

Crypto Index The Base Protocol acts as a one-stop trading instrument which allows holders to speculate on all cryptocurrencies simultaneously, rather than just one or a select portfolio of multiple. It allows traders to agnostically invest in the entire crypto ecosystem. This is its primary function. The Base Protocol can also be used as a tool for more nuanced trading situations:

Save Haven BASE can be used as a transitory, “save haven” position between crypto transactions. Typically, one might trade into a “blue chip” crypto to reduce risk exposure, or trade into a stablecoin to remove risk exposure. Trading into BASE presents an alternative that maintains exposure to all cryptocurrencies rather than just one. This could be riskier than trading into a blue chip, but in some instances, may act as a hedge against some isolated / unforeseen events. For example, a rapid downfall in the blue chip, or the rapid emergence of a new project. Trading into BASE mitigates the inherent risk of holding one coin, while absorbing the potential gains of several others. So far, the most popular safe haven crypto asset is Bitcoin, as it generally leads industry direction and is historically the least volatile. The ability to “hold” the entire crypto market should present a useful trading alternative.

Price Reference Another use case is for BASE to function as a price reference for all cryptocurrencies. If a trader is speculating on an altcoin (x), he will often track price in terms of x/BTC rather than x/USD. This price reference illustrates how x performs relative to BTC rather than USD, which is the more important data for many crypto traders. If the trader instead uses x/BASE as their price reference, it would illustrate how x performs relative to the overall crypto market, rather than just BTC. The x/BASE price reference should present a valuable alternative to the popular x/BTC price reference.

Lending Instrument BASE can also be used as a lending instrument to hedge on leveraged crypto trading. Traditionally, lending has been a challenge in crypto; if an individual borrows 1 BTC to buy a car, they could be on the hook for much more than they originally borrowed when it’s time to pay that 1 BTC back. This volatility presents a problem in borrowing crypto for general purposes, but can be useful if borrowing for crypto investing. Say a trader borrows 100 BASE to buy an altcoin, and that the altcoin plummets alongside a bearish trend in the crypto markets. When the trader goes to pay their 100 BASE back to the lender, he notices the value of that BASE also dropped – perfectly correspondent to the crypto market. This means that when he pays the loan back, he only absorbs the loss he took that was in excess of the overall loss in the market. And vice versa, if his altcoin went bullish, he would only absorb the gain in excess of overall market performance. In this way, BASE can be used as a strategic hedging instrument for crypto-focused portfolios trading on leverage. The ability to speculate on the entire crypto market with one synthetic instrument lends itself to use cases like these and many others. Those interested in exploring these use cases can build on the Base Protocol to create relevant, second layer products.

Essential Information
Started Date November 30th at 8PM CST
End Date Unknown
Acceptable currencies USD, BTC, ETH
Base Protocol Price $0.725804 USD
Token Name Base Protocol
Token Symbol BASE
Base Protocol ROI -6.69%
Website Link Home
Market Cap $52,908,126 USD
Circulating Supply 72,895,850 BASE
Whitepaper Whitepaper
Market Rank #263
Number of tokens for sale
Tokens exchange rate
Minimal transaction amount

More about Base Protocol (BASE):

Synthetic Assets Synthetic is the term given to financial instruments that are engineered to simulate other instruments while altering key characteristics. There are many different reasons behind the creation of synthetic positions. A synthetic position,for example, may be undertaken to create the same payoff as a financial instrument using other financial instruments. Synthetic positions can allow traders to take a position without laying out the capital to actually buy or sell the asset. A synthetic is an investment that is meant to imitate another investment.” (Chen, 2019) Derivatives (such as futures or options) are the most common form of a synthetic asset. However, not all synthetics are derivatives – it is important to understand the difference. What distinguishes derivatives is that they have defined value. For example, a futures contract for gold has a defined value equal to the dollar cost of that contract. It derives changes in value from gold, but maintains some independent value because it was either purchased with cash or a legally binding guarantee for future purchase was made. However, something can function as a synthetic without having defined value. For example, consider “fantasy football,” a free-to-play activity where users create virtual football teams that relate to the performance of real players. A virtual team acts as a synthetic to its underlying players, but the virtual team doesn’t have defined value because it was never purchased – it was only created. In this way, the virtual team is a synthetic representation of its underlying players, but it is not a derivative. The virtual team has no defined value. That is, until a user decides to pit their virtual team against another for a wager. If a user places a bet on their team in a virtual game, that team now holds speculative value, because the value of their wager is derived from the performance of their virtual team’s real life players. The difference between this virtual team and the more traditional derivative is that it could be created out of thin air. And unlike a derivative, it acts a synthetic asset before monetary value is attached to it. So far, this nontraditional class of synthetic hasn’t presented any valuable use-case in financial markets. However, it inspires unique possibilities in an emerging decentralized finance space. ——————————————- In addition to reviewscenter.net will try to provide their observations and make the best review here. But this monitoring is not complete without your comments, messages and reports. So post your comments on the investment system provided at the end of each post or email reviewscenter.net@gmail.com NOTE: reviewscenter.net is not a financial and investment system and it never enter into the investment services’s area. Our main task is to provide the correct payment for hyips and their related data. reviewscenter.net has no responsibility for your investments. Do your investment with more observation and investigation.

Base Protocol (BASE) Scam or Not?

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