rvn3sPrice

(RVN3S)

Leveraged tokens are derivative products that offer amplified exposure to the price movements of an underlying asset, such as a cryptocurrency. They are designed to provide a leveraged position (e.g., 2x, 3x short or long) without the need for managing collateral, margin, or the risk of liquidation typically associated with traditional margin trading. They achieve this through a combination of derivatives and internal rebalancing mechanisms, often on a daily basis, to maintain their target leverage. This simplified approach allows traders to take leveraged long or short positions.

Leveraged tokens carry significant risks. They amplify losses as much as they do potential profits if the market moves against the token's position. In volatile or sideways markets, frequent rebalancing can lead to "volatility decay," where the token's value erodes over time, causing long-term returns to underperform the underlying asset. Daily rebalancing also means that returns can deviate significantly from expected gains or losses over multiple days, especially in choppy markets, and extreme market movements could severely impact the token's value.

No, leveraged tokens are primarily designed for short-term speculation and active trading, not for long-term investment. Due to factors like daily rebalancing and volatility decay, their value can erode over extended periods, making them unsuitable for a buy-and-hold strategy. They are best utilized by experienced traders who actively monitor market conditions and understand the inherent complexities and risks associated with leveraged products over short timeframes.

The underlying asset for RVN3S is Ravencoin, which is identified by its ticker symbol RVN. This means that the performance of RVN3S is directly tied to the price movements of Ravencoin, but in an inverse and leveraged manner. RVN3S is engineered to reflect the opposite price action of RVN, amplified by a factor of three on a daily rebalanced basis.

Ravencoin is an open-source, peer-to-peer blockchain launched in 2018, specifically designed for the efficient transfer of assets, such as tokens, from one holder to another. It was built as a fork of the Bitcoin code, incorporating key changes including its issuance schedule, block time, a total coin supply of 21 billion RVN, and a mining algorithm (KAWPOW) designed to be ASIC-resistant. Ravencoin allows users to create custom tokens and NFTs on its blockchain, facilitating asset creation and management.

As a "3x Short RVN" token, RVN3S is designed to decrease in value by approximately 3% for every 1% increase in the price of RVN, and conversely, increase by approximately 3% for every 1% decrease in the price of RVN. This performance target is achieved on a daily rebalanced basis. Its primary function is to provide an amplified inverse exposure to Ravencoin's daily price movements, making it a tool for short-term bearish speculation against RVN.