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Shaurya is an analyst/editor for CoinDesk’s markets team in Asia.
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Metalpha Technology Holding Ltd (NASDAQ: MATH), a wealth management company for cryptocurrencies, said on Friday it will work with Litecoin Foundation to develop sustainable mining solutions for the Litecoin ecosystem.
The Litecoin foundation is a non-profit that maintains and develops products for the namesake blockchain.
The partnership’s specific areas of research will include developing derivative products, facilitating renewable energy use, increasing energy efficiency, and lowering carbon emissions from mining on the Litecoin Network.
Metalpha will develop financial derivative products for LTC tokens, it also aims to support crypto miners with hedging products against market risk and to lower the environmental impact of crypto mining.
Hedging is a risk management strategy employed to offset losses in investments by taking an opposite position in a related asset.
Crypto mining is a resource-intensive activity that relies on powerful computers to process and validate transactions for proof-of-work blockchains, such as Bitcoin and Litecoin. Miners receive the network’s tokens as a reward, which are typically sold on the open market to cover extensive costs and turn profits.
However, a drop in crypto prices has lead to churn for miners as they are unable to convert the high costs. This is where hedging comes in, allowing miners to continue operations by generating money regardless of market movements.
Meanwhile, Metalpha and Litecoin Foundation added they will work with universities and research institutions to further sustainable blockchain innovation, support public education around the Litecoin network, and improve network awareness, adoption, and scalability.
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Shaurya is an analyst/editor for CoinDesk’s markets team in Asia.
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Shaurya is an analyst/editor for CoinDesk’s markets team in Asia.
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Today, news broke that the Litecoin Foundation has officially partnered with blockchain-based digital asset manager MetaLpha to develop a suite of hedging products for miners of Litecoin (LTC).
This strategic partnership is seen as part of a broader effort by the Litecoin Foundation to expand its offerings, in order to take advantage of the digital currency’s recent surge in popularity. Billed as the “silver to Bitcoin’s gold,” Litecoin has seen a massive surge in price in recent months, with experts citing a variety of factors that could be driving the upswing.
The products developed by MetaLpha are expected to provide Litecoin miners with a safe and secure method to hedge their investments, as opposed to simply taking their chances on the volatile market. By allowing miners to effectively reduce their risk exposure to price fluctuations, MetLpha’s efficient hedging products could allow them to reap even greater rewards while engaging in the Litecoin network.
The partnership between MetaLpha and the Litecoin Foundation could pave the way for a new era of profitability for LTC miners, by allowing them to secure a steady stream of income regardless of market fluctuations. This could also be a positive step for Litecoin’s brand image, as greater stability often leads to more widespread adoption.
It remains to be seen what impact this partnership will have on the future of Litecoin, however it appears to be a positive move for those trying to make a profit from mining LTC. The products created by MetaLpha are expected to be available in the near future, and could revolutionize the way miners interact with the Litecoin network.
