Anyone who works with cryptocurrency will tell you this alternative asset class possesses unprecedented potential. However, at times, it can feel as if only professionals or tech gurus have the background and knowledge to effectively tap into this market and generate profits.
Enter Zignaly, a social investment platform that offers a wide range of crypto-trading solutions for traders of all backgrounds and skill levels. At their core, Zignaly seeks to make alternative investments more accessible to traders; offering cutting-edge wealth management services so users can have their portfolio professionally managed.
Zignaly’s services allow new investors to capitalize on the trading strategies of more experienced traders by investing in a pro trader’s fund that is actively managed by these experts.
After meteoric growth including over $700 million in trading volume over the last two months, Zignaly is ready to expand beyond version 1.0 of their social investment platform. With the intention of making crypto asset trading accessible to all, Zignaly is launching its own ERC-20 token called ZIG, which will help power the platform’s NFT-based insurance protocol along with a foray of use cases as seen below.
ZIG – a platform-centric ERC-20 token
ZIG is the gateway to the Zignaly ecosystem which is built on the ERC-20 token standard is used to facilitate all services running on the Zignaly platform, including the NFT-based Insurance protocol. By introducing a platform-centric cryptocurrency, Zignaly is able to get closer to their users and generate value for them, not only through the insurance offering, but also by giving token holders additional features and services such as governance roles, platform discounts, and loyalty programs.
Below are the various ways ZIG will be integrated within the Zignaly platform.
The primary function of ZIG is to act as the unit of exchange for our insurance contracts. This means that users will be able to both purchase insurance NFTs and claim their policy coverage in ZIG.
ZIG owners will act as stakeholders in a unique governance structure. On top of early access to new features, they will possess voting rights on deciding upcoming platform updates and future plans.
ZIG will also be used to pay for platform-wide fees such as Profit-Sharing services, additional insurance fees, potential trade commission rebates, and other features.
As more NFTs are introduced to the crypto ecosystem, ZIG owners will have first access to limited-edition NFTs that are to be released in the future.
The industry’s first NFT-based insurance protocol:
You might have heard the term ‘NFT’ float around as a buzzword in, news such as the “Everyday: The First 5000 Days” NFT art piece selling for $69 million USD on March 11th, has dominated the headlines and made NFT’s the latest trend amongst crypto enthusiasts and investors, but let’s break this concept down. Non-fungible tokens, or NFTs, are verifiable and unique assets that can be easily traded. Unlike cryptocurrencies, which are identical coins that can be exchanged at equal value, no two NFTs are exactly the same.
Zignaly is using this concept of unique or non-fungible utility as the framework for the insurance protocol and as a tool for risk mitigation.
As traditional investors normally opt for safer investment products such as ETFs, index funds, or equities, Zignaly’s insurance protocol is the first risk management tool to give users additional protection against market volatility, helping these more risk-averse investors consider alternative asset investing instead of traditional financial products.
With Zignaly, investors are able to safely trade crypto by insuring between 10-100% of the funds invested through Zignaly’s profit-sharing feature. Essentially, the protocol works how any asset insurance would, except better – and here’s why: Traditional asset insurance is highly inefficient due to the red tape and excessive paperwork involved in every transaction. However, in the case that insurance is tokenized, much of the manual paperwork, and therefore business costs of insurance, are eliminated through means of blockchain technology and smart contracts.
The NFT based Insurance Protocol is designed with 4 layers – ZIG which acts as the unit of exchange across the product landscape, NFTs which are the digital representation and tracking system of the smart-contract based insurance system, the Drawback Percentage which is a dynamic formula used to determine when an insurance policy needs to be triggered, and the Fund Value Formula which ensure the exposure of the insurance fund is never above the total value of insurance policies active at any time. The 4 layers combined work together to ensure that the fund will not over-extend itself and take on more risk than it is capable of handling all while protecting users through events of mass volatility and subsequent liquidation. Even under regular conditions, the insurance protocol can work to minimize losses and hedge against potential price movements big or small.
Stay tuned for more exciting announcements pertaining to the creation and deployment of the insurance protocol, as well as how and where you can purchase ZIGs!
For more news and to stay updated with the latest product offerings from Zignaly make sure to join our community at https://token.zignaly.com/