Hello devs, usually when I bought from an ICO the price drops. How can dehedge protect the ICO from huge dumps. Will Dehedge function as USDT without selling my hold ICO coins? Sorry, hope my question has a sense.
Hello, and thanks for your interest in our project. This is a good question that you are asking. We don't guarantee that the ICO prices will not dump. This is of course always a possibility, but please note that this is not automatic.
DeHedge will (through its MVP) offer a coverage of up to 50% decrease in the initial ICO price (for a certain period of time). So if the price drop immediately by 10-20% following the ICO, will all the investors claim their loss (and by doing so, end their "contract" with DeHedge). We don't think so. A smarter move seems to wait to be closer to the expiration date of the coverage to see if it is worth claiming the loss. By that time, the price will have had time to potentially increase again.
Following the ICO (which will allow DeHedge to constitute strong reserves), the company will be able to offer coverage greater than 50%.
Hopes this answers your question.
