EF Hutton has announced that it has licensed intellectual property that is able to provide a means of hedging the most valuable virtual currency in the market, Bitcoin (BTC), to The Bitcoin hedge Foundation. EF Hutton is a subsidiary of the company HUTN Inc. The information has been released in a press release on October 10.
According to the company, the license royalty is twelve per cent of the hedge value. The company explains that if the value-added is $200 million dollars (½% of the value of all Bitcoin), EF Hutton will have a royalty valuw of approximately $24 million dollars.
At the same time, EF Hutton explained that they will be using any royalty income for working capital. They will also use it to redeem debt and expand the fund.
The patent application was filed earlier during the year and the solution will be finally introduced by The Foundation in October this year. Since December 2017, Bitcoin has lost an important part of its value. Most of the crypto holders were searching for a way to mitigate losses. There is a very important demand for a viable hedge.
In order to build this solution, EF Hutton has been working with mathematicians and economies. Additionally, other experts have contributed to the solution.
The Bitcoin Hedge Foundation is a non-profit organization that has been founded some time ago. The main intention behind it is to expand the knowledge about Bitcoin all over the world. Moreover, in order to increase the wide-scale benefits from this solution, it will be available for Bitcoin holders at no charge. It will be possible to have access to it through selected exchanges.
EF Hutton CEO, Christopher Daniels, explained on the matter:
“EF Hutton has always been an innovator and this development is consistent with the history of our brand. It is an undisputed fact that EF Hutton predecessors developed online trading, universal life insurance and the fee-only financial advisor model hat is today’s standard model for the delivery of financial advice.”
The current solution will be available to all Bitcoin holders in the market and others as well. However, it will include a mining process to mint a coin that requires proof of work (PoW).
Just the last week, EF Hutton announced MeggaCoin, a private utility token that would allow users to get paid as they use meggalife.com and other associated apps.