3X Short BNB Token to USD Price Chart

How much has 3X Short BNB Token (BNBBEAR) changed in price today?

The price of 3X Short BNB Token (BNBBEAR) has increased today, which reflects the nature of leveraged tokens that amplify the price movements of the underlying asset, in this case, Binance Coin. An up-to-date price change can be observed by looking at its 24-hour percentage change, which is currently +0.00%.

What Is 3X Short BNB Token (BNBBEAR)?

3X Short BNB Token (BNBBEAR) is an ERC20 token that aims to provide returns that are three times the inverse of the daily returns of Binance Coin (BNB). Meaning, if Binance Coin’s value goes down by 1% in a day, BNBBEAR aims to go up by 3%, and vice versa. Designed for short-term investment strategies, these tokens cater to traders who wish to bet against the market movement of BNB without holding the actual coin.

Who created the 3X Short BNB Token?

3X Short BNB Token, like other leveraged tokens, is typically created by cryptocurrency exchanges or financial service platforms that specialize in derivative products. BNBBEAR was created by the team at FTX.com, which is a popular cryptocurrency derivatives exchange. FTX.com offers a range of leveraged tokens for different cryptocurrencies, allowing traders to take bullish or bearish positions with leverage.

How does 3X Short BNB Token work?

3X Short BNB Token works by utilizing derivatives called swaps to provide the leveraged exposure to Binance Coin's price. Daily rebalancing is done to ensure that the token achieves and maintains the target leverage exposure of -3x to BNB's daily performance. It is important to note that due to daily rebalancing, the performance of the token over a period longer than one day can significantly differ from the target leverage due to compounding effects.

What Makes 3X Short BNB Token Unique?

The uniqueness of 3X Short BNB Token comes from its ability to give traders short exposure with triple the leverage to the daily returns of Binance Coin, without the need to deal with complex financial instruments or margin requirements. The straightforward ERC20 token format makes it accessible and transferrable within the Ethereum ecosystem. Traders and investors can use BNBBEAR for hedging purposes or to speculate on price declines of BNB.

What is the daily rebalance feature of 3X Short BNB Token?

The daily rebalance of 3X Short BNB Token is a key feature that ensures the leverage level remains close to -3 times the daily return of Binance Coin. At the end of each trading day, the performance of BNB is calculated and the token’s exposure is adjusted accordingly. This daily rebalancing is crucial because the compounding of daily returns can lead to divergence in expected returns over periods longer than one day.

How Is the 3X Short BNB Token Valued?

The value of 3X Short BNB Token is determined by the performance of Binance Coin, as well as the mechanics of leverage and rebalancing. The token's price will vary as it inversely tracks BNB's daily return by -3 times. The valuation is also subject to the liquidity and market conditions of the platforms where it is traded.

How Is the Supply of the 3X Short BNB Token Regulated?

Typically, the supply of leveraged tokens like BNBBEAR is regulated by the issuing platform, in this case, FTX.com. The exchange can create or redeem tokens based on demand and supply to ensure liquidity and proper functioning of the market. The total supply of BNBBEAR can fluctuate as these operations are carried out.

What Is the Market Capitalization of 3X Short BNB Token?

The market capitalization of 3X Short BNB Token is calculated by multiplying the total number of tokens in circulation with the current market price of BNBBEAR. Since this token is designed for short-term trading and its price is very volatile, the market cap can vary greatly within short periods.

Where Can You Trade 3X Short BNB Token (BNBBEAR)?

3X Short BNB Token (BNBBEAR) can typically be traded on the cryptocurrency exchange that issued it, which in this case is FTX.com. Additionally, it might be available on other exchanges that support ERC20 tokens and cater to derivatives or leveraged products. Users should ensure they are trading on a platform that supports these types of tokens.

How Can You Store 3X Short BNB Token Safely?

Storing 3X Short BNB Token safely involves using a wallet that supports ERC20 tokens. It's important to choose a reputable wallet provider and follow best practices for security, including keeping your private keys safe, using two-factor authentication, and avoiding sharing sensitive information with others. However, given the nature of leveraged tokens, they are generally not intended for long-term holding and are often traded or held for short durations on the issuing exchange.

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