October 17, 2018

Virtuse Exchange Unveils The First Rated Digital Asset Collateralized Contracts

By Jan Simek

As already announced (in August issue of Virtuse News), Virtuse Exchange has invested a lot of time and energy developing a rating system of all Digital Asset Collateralized Contracts (DACCs) on its platform and selected DACCs traded elsewhere. We are excited to share the first list of rated cryptocurrencies, here, to our community.

DACC is the core innovation of Virtuse Exchange platform. Its tokens will be directly linked to underlying liquid and tradable real assets, allowing high liquidity. They are automatically managed based on predetermined transparent rules (i.e., not by humans) and their price responds to market developments. DACCs will be continuously tradable, and therefore, attractive to investors looking to buy and sell units of the fund (tokens) in a matter of seconds.

DACCs represent “bets” on price development of an underlying asset at any given time in the future. The contract has two parties, each expecting opposite price development. At the agreed expiration date, each party is rewarded according to the deviation from the expected price. Should the price deviate by more than 100% from the expected price, the contract is settled automatically — one party receives double its inserted amount, and the other loses all funds they originally invested.

Now let`s have a closer look at the DACC Rating. The methodology criteria are split into two main categories:

  1. Investment risk/reward 
    Evaluates the most typical investment dilemma, an optimum search of potential return and risk of failure. For example, Gold has historically been more volatile to Silver and is, therefore, riskier and has higher potential at the same time.
  2. Technology and tokens adoption 
    In other words, it focuses on how the token creators are managing the business. Technological grade assesses the advancement of the technological solution. i.e. Its stability, reliability, scalability and first of all security. It also includes the teams quality and experience. Adoption is simply about how many people are talking about it and will be using it. Main criteria are the number of people in the telegram chat.

Furthermore, our ratings show which asset is backing the DACC (Gold, silver etc.); actual price of the token and its Market capitalization.

The article can be found also on Virtuse Exchange Medium profile.