Forgive me, but it sounds almost too good to be true to be seriously considered. It's a decent idea, to be honest, and it's almost like those put options already available out there for traditional markets like stocks... except yours seems like a more direct insurance against price decreases. Checked out the website already and my comments:
- it's not a licenced insurance I suppose, so am assuming this is going to be a conditional smart contract triggered by a price and not manually claimable?
- will the insurance amounts be escrowed along with the plan's cost?
- You put 3 options only in the example. No price limits between that range?
Hey @buwaytress,
Thanks for the feedback! 🙂
You're right in that we're essentially offering put options. Some institutional funds are interested in offering over-the-counter (OTC) Bitcoin options, and we've been trading with them. We were thinking more people could benefit from this if we simplified this in laymen terms (as insurance) and offered to more people.
To answer your other questions:
- We're actually taking the steps to get regulatory approval and a corporate insurance from a traditional financial services company. If it doesn't work out, we think smart contract is definitely the right approach and would be our Plan B.
- Yes
- The ranger is wider (from 500 to 35,000; increment by 500), but for simplicity, we just wrote down the three.
Let us know if you have any questions.
P.S. We've updated the landing page with more information.
