Cryptoasset exchange BlockRe announced on Wednesday that it would be releasing a new risk-assessment tool in order to reduce investors’ risk with regards to cryptocurrencies.
The tool would take care of funds moving between global marketplaces, known as takeout.
When assets such as Bitcoin and Ether are traded across different exchanges, there is potential for inefficiencies and uncertainty to arise, as it depends on certain factors like trading fees, markups, and fluctuating exchange rates, as well as the market’s overall attitude toward transactions.
The new software – built upon BlockRe’s proprietary trading platform – would integrate all of these things into one solution.
“This initiative offers investors the opportunity to facilitate a more seamless experience in the Cryptocurrency Marketplaces, giving market participants the confidence to continue buying and selling cryptoassets across the globe,” said Minh-h Vo, CEO of BlockRe.
BlockRe intends to use this new tool to provide protection for investors who still wish to trade in the digital currency.
“BlockRe sees enormous opportunity in reaching cryptocurrency stakeholders with a tailored risk & liquidity solution. The launch of BlockRe Risk&Liability tool, sets a new standard in risk and liquidity solutions for Cryptoassets Marketplaces,” added Vo.
In addition to the developer-side risks, cryptocurrencies also bear the risk of interest-rate fluctuations. If the market were to drop sharply, investors could see significant losses in their holdings.
BlockRe will offer a 100% liability protection to allow investors to protect themselves in case the platform becomes bankrupt, along with automatically withdrawing money during liquidation.
Andrea Miteski, PhD and MD in the field of reinsurance. Long term senior insurance executive with specialization of reinsurance optimization.