The MANTRA (OM) token’s wild crash on Apr 13, 2025, shocked the crypto world. Discover the causes, fallout, and what’s next in MANTRA’s road to recovery.

In the morning and daytime hours of Apr 13, 2025, the MANTRA blockchain's native token, OM, sat at a respectable market cap of $6 billion, making it the third-highest-ranked cryptocurrency in the 

 (RWA) category, the area the platform specializes in. Everything seemed like smooth sailing for the token.

Then, just after 6 PM UTC, the price of the OM token suddenly began to free-fall, declining from nearly $6 to about $0.50 in the space of just two hours.

A project that started the day as one of the top players in the RWA field was now worth 90% less as the evening approached. OM's abrupt, sharp crash immediately caught the market's attention, with speculation of a 

However, MANTRA's CEO, John Patrick Mullin, immediately sprang into action for PR damage control on social media, reassuring the public that the team members weren’t dumping OM tokens at all. Instead, MANTRA's founder and CEO alleged that deliberate actions of some 

 (CEXs) had caused the catastrophic plunge.

As of our coverage date of Apr 23, 2025, this is a developing story. In this article, we’ll establish what actually happened, who's involved and what awaits the OM token in the foreseeable future.

 decentralized network dedicated to RWA tokenization and utilization in compliance with real-world regulatory requirements.

 It features high scalability and low transaction fees. The project is one of the earliest initiatives dedicated to RWA use via blockchain technology. Originally, MANTRA debuted as a 

 (ETH) in August 2020. In October 2024, the project migrated to its own dedicated Layer 1 platform, the MANTRA Chain. The MANTRA blockchain is based on the Cosmos SDK framework, and is part of the wider 

The MANTRA ecosystem's main products include MANTRA DEX, a 

 (DEX); a digital identity (DID) management tool; a compliant token development and management solution; and a comprehensive compliance and permissioning system. MANTRA has also partnered with global powerhouses like Google Cloud, and with DAMAC Properties, one of Dubai's most prominent developers, to propel innovative solutions for 

Starting in late 2024, right after its own dedicated mainnet launch, MANTRA had become a significant player in the RWA corner of 

 (DeFi). By late February 2025, the platform’s native OM token had climbed to a value of nearly $9, with its market cap peaking at around $8.2 billion. Before the fateful events of Apr 13, 2025, OM was the third-highest-capped crypto in the RWA category, trading at $6.27, with a market cap of slightly over $6 billion, according to the CoinGecko portal.

In the evening hours (UTC time) of Apr 13, 2025, OM began to lose its value precipitously, dive-bombing from over $6 to about $0.52 in the space of two hours. The token’s market cap fell to slightly under half a billion dollars — a loss of more than 90%.

CEO John Mullin was quickly online, reassuring the crypto community that no team member had sold their OM holdings, and that this wasn’t a case of the bad ol’ rug pull. Instead, Mullin alluded that after OM tokens were moved to two leading CEXs (Binance and OKX) to use as collateral, the exchanges initiated a cascade of 

 of positions backed by the token. Both exchanges refuted the allegations, and connected OM’s price collapse to its recent unusually high price 

, and significant tokenomics changes made to OM in October 2024 that greatly undermined its value.

As a chain of liquidations took place, the token’s price started to plummet, causing significant panic that quickly led to further price drops. The situation only stabilized closer to the end of the day, with OM’s price remaining under $1. As of Apr 23, it’s trading at $0.5543 — a far cry from its rate of over $6 just two weeks ago.

After investigating, crypto analytics firm Lookonchain concluded that 17 wallets had deposited 43.6 million OM tokens (4.5% of the token's circulating supply) into the implicated exchanges. Two of these wallets are believed to belong to Laser Digital, one of MANTRA's investors. Another investor in the project, Shorooq Partners, is also suspected to be among the 17 wallets. Both Shorooq and Laser Digital have denied the allegations.

Although the price plunge was immediately compared to the 2022 collapse of the 

 (LUNA) blockchain, many analysts point out that the two crashes are fundamentally different. Terra's crash resulted from structural abnormalities in the 

 regulating UST, the project's stablecoin. In contrast, OM's fiasco is suspected to be the direct result of market-driven manipulation by 

, and possibly exchanges. No security breach, disruption to services or data, or other adverse structural events have occurred on the platform.

While this development is unprecedented for the project, MANTRA has been embroiled in other controversies throughout its history. One of these was its 

, first announced in August 2024 and then delayed multiple times. Around 50% of the wallets believed to be bots were cut off from the airdrop list. However, many considered the bot-culling process to have been conducted without much proof.

There have also been reports of vote rigging in the project's governance system in a bid to obscure MANTRA’s centralized model of profit allocation. Additionally, some analysts have accused the project of "forced bridging" to manipulate the market price. Platform users had to migrate their Ethereum-based OM tokens to MANTRA's native OM tokens via 

, which would increase gas fees and allow the project team to control the token's circulation pace.

How is MANTRA (OM) headed toward recovery?

MANTRA’s CEO rapidly reassured users that the team is now working hard to jump-start the token’s recovery. On Apr 14, 2025, Mullin unveiled plans to initiate a buyback scheme, along with the intent to burn all OM tokens held by the project team. The team's supply totals 300 million tokens, representing about 17% of the total supply.

He also denied factually incorrect assertions circulating online that the team effectively controls 90% of OM's supply. Mullin further assured the public that no large-scale selling events by investors have occurred.

As OM’s value has stayed firmly under $1, it remains to be seen how these PR efforts — as well as the planned buyback and burn — will affect the token’s future.

 as a swap pair with USDT, or on the Derivatives market as the 

Naturally, given the ongoing situation with the OM token, buying OM is at your own discretion, as right now the token is truly for the adventurous and brave at heart.

As of Apr 23, 2025, the OM token is trading at $0.5543, 93.8% lower than its ATH of $8.99 on Feb 23, 2025, and 3,138.8% higher than its ATL of $0.01726 on Oct 12, 2023.

Curiously, most crypto price prediction portals are optimistic about the OM token's long-term prospects. DigitalCoinPrice 

 of $1.81 in 2027 and $2.82 in 2030, whilePricePrediction 

It's hard to verify all the allegations flying around regarding the involvement of exchanges and key investors in the MANTRA OM incident. What matters at this stage is that the project team has been quick and proactive in injecting transparency and clarity into the situation.

The free fall in the token's price seems to be over by now. In fact, OM’s decline was over within hours of the incident. Moreover, unlike Terra's LUNA and UST coins, OM hasn't become worthless. All these factors point to potential stabilization and recovery ahead. The question now is: Will the pace and magnitude of the recovery be enough to save the project in the long term? At this early stage after the collapse, few people could answer the question with confidence. We'll eagerly await the developments over the next few weeks to see if MANTRA finds its way out of the woods. 

Intermediate

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MANTRA (OM): Understanding its wild ride and road to recovery

In this article, we explore WalletConnect's features, its native token (WCT) and how you can trade WCT on Bybit Spot and Futures.​

WalletConnect is an open source bridging protocol that facilitates secure connections between digital wallets and 

 (DApps). With over 38 million unique active wallets and 57,000 supported apps, it’s getting noticed by the crypto community. In this article, we explore WalletConnect's features, its native token (WCT) and how you can trade WCT on Bybit.​

 protocol that allows users to connect their mobile wallets to DApps via QR code. This eliminates the need for browser extensions, and enhances security by keeping 

The protocol supports a wide range of wallets and DApps, making it a versatile tool for users navigating DeFi and web3.

 is essentially a decentralized infrastructure that facilitates a uniformed way for users to easily connect their crypto wallets with thousands of DApps. It operates through a network of

 that relay messages, ensuring reliable and secure connections. The network's design emphasizes scalability and resilience, catering to the growing demands of DeFi. 

When a user initiates a connection between their wallet and a DApp, WalletConnect establishes a secure session through a relay server that enables encrypted communication, allowing users to interact with DApps directly from their wallets. 

The network's architecture ensures that messages are transmitted efficiently, maintaining a seamless user experience.​

The WalletConnect ecosystem comprises various stakeholders, including node operators, wallet providers and DApp developers. Node operators play a crucial role by maintaining the network's infrastructure and relaying messages. 

To incentivize participation, the network implements a rewards mechanism whereby node operators earn WCT tokens, based on their performance and contribution. Prominent organizations like Consensys, Ledger and Figment are among the network's node operators, underscoring its robustness and reliability.​

 is the native utility and governance token of the WalletConnect network. It has a total supply of 1 billion, 

Initially, WCT is nontransferable to ensure that tokens remain within the WalletConnect ecosystem, supporting its focus on network functionality and development. Based on discussions within the community, transfers will be enabled based on community consensus and future governance decisions.

Where to buy the WalletConnect token (WCT)

 on Bybit Spot, and as a Perpetual contract with up to 75x 

. Bybit provides a secure and user-friendly platform for buying and selling WCT, allowing users to participate in the WalletConnect ecosystem. 

How to trade the WalletConnect token (WCT) on Bybit

Bybit's platform ensures efficient execution and provides various tools to assist users in their trading journey with ease.​ 

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WalletConnect (WCT): Bridging web3 beyond wallets and DApps

Circle has launched the Circle Payments Network (CPN), a global payment solution designed to streamline cross-border transactions using stablecoins like USDC and EURC for real-time settlement. 

The S&P 500 rose 2.51% as investor confidence improved following President Trump’s support for Fed Chair Powell and hints of easing U.S.-China trade tensions, despite tempered optimism and Tesla’s earnings miss. Gold rebounds toward $3,400 as the US Dollar weakens and investor caution lingers over US-China trade and Fed concerns. Technicals suggest a possible pullback, with focus shifting to upcoming S&P Global PMI data. The Coindesk Indices, which tracks the broader crypto market, rose 7.46%, with Bitcoin and Ether up 4.68% and 7.70%, respectively, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is DEEP, up 122.1%, following the launch of DeepBook v3.1 on Sui, which unlocks permissionless pools, enhanced balance management, and cost-efficiency for DeFi.

DeepBook (DEEP), launched on July 12, 2023,  is Sui’s native liquidity layer, using a central limit order book to enable high-throughput, low-slippage, and low-fee trading. 

, introduces several key upgrades: permissionless pools, revamped fee mechanics, and enhanced balance management. These changes make DeepBook more accessible, composable, and cost-efficient for DeFi users. Permissionless pools allow anyone to create custom trading pairs, while the enhanced balance manager supports third-party liquidations and improves protocol stability and user experience.

Check out the latest prices, charts, and data of 

, a global payment solution designed to streamline cross-border transactions using stablecoins like USDC and EURC for real-time settlement. CPN offers faster, programmable, secure, and always-available money movement for financial institutions. It supports services like invoice payments, remittances, treasury services, and payroll payouts. Over 20 design partners, including dLocal, WorldRemit, and BVNK, are contributing to building a more efficient global payments infrastructure.

Yesterday, Bitcoin spot ETFs saw $719.2M in total inflows, with $654.1M from non-GBTC funds and $65.1M from GBTC.

 its incentivized testnet, allowing users to earn $SO tokens by testing its cross-chain lending platform. By supplying and borrowing assets across chains and completing quests, participants earn "Seeds," which will convert to $SO at TGE. Powered by LayerZero, Soul aims to unify liquidity across blockchains.

Beginner

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Circle launches Circle Payments Network for faster, secure global transactions using stablecoins

VeChain (VET) is a blockchain platform focused on sustainability, using eco-friendly technology to support green initiatives across industries and drive a more sustainable future.

Sustainability is now the name of the game across many industries. The blockchain industry is one of them, with several projects aiming to reduce the energy impact of their operations or support green causes in other ways. However, on closer inspection, sustainability has received much less attention in the world of blockchain technology than many people may assume. Indeed, the industry's two leading data portals, CoinGecko and CoinMarketCap, have no "Sustainability" or similar category, despite coming up with hundreds of other classifications.

Some smaller-cap projects outside of the top 100, such as 

 (IOTA), do focus on supporting environmental causes. But in the entire list of top 100 cryptocurrencies by market cap, only one project can confidently be described as having sustainability as its key pillar — 

With a market cap of $2 billion (as of the time of writing on Apr 22, 2025), VeChain stands head and shoulders above any other crypto project in the sustainability niche. The project has been fully operational since 2018, and is among the oldest environmentally focused blockchain initiatives. In short, if we talk about sustainability and blockchain, it would be disingenuous not to mention VeChain and its 

Having championed green blockchain causes since 2018, VeChain announced a significant upgrade initiative in late 2024 to be rolled out in stages during 2025. Called Renaissance, it’s envisioned to further solidify VeChain's position as the leader of eco-friendly blockchain use and introduce a host of technical improvements. In fact, 2025 is the year of the most fundamental upgrade to this notable industry player in its entire history on the market, so it's precisely the time to revisit this project in our coverage.

VeChain (VET) is a decentralized project designed to support sustainability-focused blockchain use cases across various industry verticals.

 The company was first conceptualized and founded as a blockchain project in 2015 by Chinese technology professional Sunny Lu. It launched its Layer 1 network, VeChainThor (VTHO), in mid-2018, becoming one of the first decentralized initiatives to support eco-friendly applications on-chain. The VeChainThor network features low transaction fees and high levels of scalability.

For years, the VeChain blockchain has remained probably the leading decentralized platform in the niche of sustainability. As of April 2025, it retains the leadership position, and is ranked 56th among all cryptocurrencies, with a market cap of $2 billion.

VeChain's sustainable blockchain technology

Many blockchains claiming to support environmental causes typically use the 

, which is indeed much more energy-efficient than the power-hungry 

 (BTC). By using PoS, these blockchains have boldly announced that their energy use is much lower than Bitcoin's. While this is true, these platforms are essentially general-purpose networks that don't specifically design their operations with any particular sustainability use case in mind.

Instead of these two typical consensus mechanisms, the VeChainThor blockchain uses 

 (PoA), touted to be even more energy-efficient than the standard PoS employed by 

 chains. In a typical PoA consensus, a smaller number of validators with "authority" — i.e., a history of reliable behavior on the network — are entrusted to process blocks. This is in contrast to PoS, whereby many validators take part in the staking contest to outperform each other in terms of token holdings. They then receive the right to validate the next block, and have to constantly align their consensus process with other 

As a result, PoS is usually less energy-efficient than PoA. VeChain's PoA model elegantly combines efficient processing, minimal energy use and high levels of enterprise-grade security.

The VeChainThor blockchain network's processing engine also features compatibility with the 

 (EVM), making cross-chain communication with the Ethereum world much easier for VeChain developers and 

PoA block validation isn’t the only sustainability-minded feature of VeChain. Unlike many other popular chains, VeChain also directly enables sustainability use cases, primarily by utilizing its tamperproof and transparent data-tracking mechanism. Thus, enterprises across different industries can track and reliably verify the origin of goods and their sustainability status for eco-friendly supply chain management. For instance, supermarket chains can use the platform to track and verify the carbon footprint of the produce they source; logistics companies can calculate the overall emissions generated along their supply chains; and fashion brands can track sustainable sourcing of materials used for their product lines.

Besides its own blockchain, the project also offers a blockchain-as-a-service (BaaS) platform, VeChain ToolChain, to help businesses integrate VeChain's technology into their business processes via standardized smart contract services.

To further position itself as a champion of sustainability, VeChain launched 

 represents an on-chain ecosystem of DApps that reward VeChain users for completing various eco-friendly tasks, such as using reusable coffee cups, shopping for organic products, picking litter off streets and more. VeBetterDAO is the project’s foray into the individual consumer side of environmentalism, which complements the VeChain platform’s long-standing sustainability features for the enterprise world.

In late 2024, VeChain first announced its planned multi-stage upgrade, Renaissance, to make the platform even more efficient. Its changes are envisioned to take place gradually throughout 2025, and possibly beyond. The Renaissance upgrade touches many parts of the platform, with three key areas involved — a new VeChain staking and node model, technical updates and changes to the dual token mechanism. We'll cover the first two areas below, and the changes to VeChain’s tokenomics in the next section.

VeChain’s PoA block validation model uses a group of 101 trusted Authority Masternodes (AMs) who will fully transition to Validators under the new Renaissance model by December 2025. Each Authority Masternode is approved by the VeChain Foundation. These nodes are responsible for generating transaction blocks. You’ll need to 

 at least 25 million VET to participate in block production, which occurs in fixed 14-day cycles.

Under the platform’s pre-Renaissance model, there are two more types of specialized nodes — Economic and X-Nodes — who stake their tokens to a selected AM/Validator and participate in 

 on the platform. After the Renaissance upgrade is fully rolled out, Economic nodes and X-Nodes will be replaced by a tiered system of Delegator nodes.

Delegators will need to stake a certain amount of VET tokens to mint Delegator 

, which will entitle them to different grades of staking reward multipliers. The more you stake, the higher grade of NFT you receive, and the higher your staking rewards will be. When blocks are produced, AMs/Validators will receive 30% of the total block reward, with the remaining 70% going to holders of the Delegator NFTs.

The image below shows the new Delegator NFT–tiered model, with minimum VET staking requirements and reward multipliers.

While the VeChainThor network is EVM-compatible, there are still differences between its technical parameters and the standard EVM used by Ethereum. For this reason, the Renaissance upgrade aims to reach full EVM compatibility, including implementing the JSON-RPC (

remote procedure call) extensively employed within the Ethereum blockchain.

As part of the Renaissance upgrade, the project will also introduce a new set of tools to achieve more seamless cross-chain capabilities. This will involve integrating new 

The VeChain token model has always been based on two cryptocurrencies: VET and VTHO. VET is the 

 that acts as the main means of value storage and transfer on the platform, while VTHO is used to pay for gas. Now, the Renaissance upgrade also changes the way the dual-token mechanism operates.

Before the upgrade fully kicks in, VTHO is still generated by simply holding VET. After the Renaissance, only staked VET will generate new VTHO for the holder. This should better align VTHO with the active participation of users on the platform. VTHO's inflation rate will also be cut by over 70%, as its issuance will be aligned to a new emission model that considers the total amount of VET staked on the platform.

To further reduce the inflationary properties of VTHO, 100% of all base transaction fees on the network, which are all paid with VTHO, will be 

VET is the platform’s value transfer and storage token. It’s also used for governance and access to various features and apps on the network. VET is a supply-capped token with a max supply of just over 86.7 billion. These properties will not change following the Renaissance upgrade.

VTHO, which is used to pay for gas fees on VeChainThor, is an inflationary token with an uncapped supply. It currently has a total supply of almost 88,7 billion. As noted above, after Renaissance, VTHO will be generated via staking only, and will feature a burn mechanism to reduce its inflation rate.

 as a swap pair with USDT, and on the Derivatives market as the 

In addition, you can take advantage of Bybit’s event dedicated to the VET token to grab a share of a 

. New users can earn VET rewards by accumulating a deposit volume of at least 5,000 VET, or by depositing at least 100 USDT and trading 100 USDT worth of VET via their first Spot trade using their Bybit account. Meanwhile, existing users can also qualify for rewards by trading at least 500 USDT worth of VET on the Bybit Spot market. The event runs through Apr 28, 2025, 9AM UTC.

As of Apr 23, 2025, the VET token is trading at $0.02576, which is 90.8% lower than its ATH of $0.281 on Apr 19, 2021, and 1,243.2% higher than its ATL of $0.001917 on Mar 13, 2020.

Long-term price forecasts for VET are mostly bullish. DigitalCoinPrice 

 of $0.088 in 2027 and $0.14 in 2030, while PricePrediction 

In the long term, VET might even rise to $1, at least according to PricePrediction’s forecast. Its portal is highly optimistic, estimating that VET will hit the $1 mark in 2034.

You might consider investing in the VeChain token VET based on the following:

When Sunny Lu created VeChain in 2015, his vision focused on sustainability issues. VeChain's work in this area has led to the creation of the first decentralized network truly dedicated to making a tangible environmental impact. The entire VeChain ecosystem — including the VeChainThor blockchain platform, VeBetterDAO and VeChain Toolchain — continues to serve as a significant enabler of sustainable technology in the business world.

Now, with the Renaissance upgrade being rolled out for the duration of 2025, VeChain aims to solidify its leadership in this sphere. With the Renaissance upon us, it's hard to see any blockchain platform that could challenge VeChain in the area of sustainability anytime soon.

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What is VeChain (VET): Building a sustainable future for all

Bybit Learn

Options

Crypto options are a fairly new financial instrument that require a modest sum for potentially high returns. Explore the hype around them with Bybit.

In every financial market, contracts form the basis of things. Contracts are legally binding agreements designed to serve specific purposes and needs. In financial markets, contracts are crafted to make a profit and are also known as “financial instruments” — abstract tools made to generate profit.

One such instrument that’s been developed to make a profit is options. As with other 

, options contracts track the underlying asset's price, i.e., its value is dependent largely on other instruments' price (cash or derivatives). An option is a contract that empowers a party to buy/sell a financial instrument at a predetermined price, on or before a predetermined date.

In their bid to become mainstream, cryptocurrencies are adopting several financial processes and instruments, with options being one of the latest instruments to be integrated into the crypto ecosystem.

 against existing risk and provide greater market exposure, diversifying one’s portfolio and enabling increased profit margins. 

Apart from this, options also allow traders to use a small amount of money to control a larger position value (leverage). As only a small amount is involved, the ROI on options trading is much higher than that of other types of trading.

Yes, there are options in cryptocurrency, and this sector of the market has experienced tremendous growth in the past few years, with outstanding contracts 

Crypto options gives a person the privilege (not obligation) to buy or sell the underlying 

 at a preset price on or before the expiration date after a premium is purchased. They’re used by options traders for speculation (potential profit if the asset moves in your direction), or by investors for hedging. As we know, volatility is rife in the crypto market, making crypto options a popular choice for investors. Currently, the most popular crypto options are 

. Before we proceed, a couple of definitions are in order.

 The amount a person pays to secure the rights provided by the contract. 

 The price at which a person has the right to buy the underlying asset (for a call option), or the price at which a person has the right to sell the underlying asset (for a put option).

There are two types of options contracts: 

, you can either buy call options or sell call options. 

When you buy a call option, you are essentially buying an underlying asset at a particular predetermined price, regardless of the market price before/at the contract’s expiration. 

When speculating in the financial market, you can purchase a call option when you believe the market price at the contract expiration will be higher than the strike price. In short, you anticipate that the value of the options will increase — the more its value increases, the more you will earn.

For example, Shaw purchases an Ethereum call option that will expire after a week, with a premium of 25 

 and a strike price of $3,000. When the price of ETH moves from $3,000 to $3,200, he may decide to close his position before the validity period elapses, and his gross profit will be $175 [i.e., ($3,200-$3,000-$25)/market price at execution − strike price - premium].

On the other hand, call option selling (naked call) is carried out when a trader expects the price of the underlying wallet to remain flat or move lower. 

Given the example above, as long as the price at expiry does not go to/go below the strike price of $3,000, and the buyer does not exercise the contract, you will collect the full premium of 25 USDT.

A call option entitles you to buy an underlying asset at a particular predetermined price, regardless of the market price before/at the contract's expiration. 

 allows you to sell the underlying asset at a predetermined price before/at the expiration of the contract, regardless of the market price at that time. 

Similar to calls, you can buy put options or sell put options. When you buy a put option, you are essentially selling the underlying asset at a predetermined price before/at the expiration of the contract, regardless of the market price at that time. 

When trying to secure the gains of minting or investing, a person could enter a put option contract to ensure the asset retains substantial value. A speculator could also purchase a put option if they believe the price of the underlying asset class would be lower than the strike price, in order to make a profit, by repurchasing it at a lower price than the one at which they bought it.

 when the price of 1 BTC was $48, 000. As she expected its price to fall, she bought a put option from her crypto exchange that gave her the right to sell her asset at a strike price of $45,000 after 2 weeks. When the price of BTC got to $40,000, Chris exercised her right and profited $5,000 as a result.

On the other hand, put option selling (naked put) is carried out when a trader expects the price of the underlying wallet to go up.

Using the same example above, a trader who sells Chris the option is betting that the price of BTC will go up. If the price of 1 BTC goes up to more than $48, 000 e.g., $50, 000, at the date of expiry, the option will expire worthless and the seller will get to keep the full premium.

As contracts, options usually involve two parties: a trader and an exchange. An options seller places a contract order on the crypto exchange, with the expiration date and the strike price specified. Then, a buyer is matched with the order by the exchange.

To ensure fairness, the cost of the premium is determined by the amount of time remaining on a contract before its expiration, the

 of the underlying asset, the market price of the underlying asset, and 

This is a strategy regularly used in trading options. As its name implies, the bull put strategy is used when a trader or speculator believes that the underlying asset will experience a slight price increase. 

 can also be achieved with OTM i.e., selling a put option at a higher strike price and buying another put option at a lower strike price, with the same date of expiration (DTE).

The key here is that you want to sell the higher strike, and buy the lower strike. However, although the risks are fairly low, this strategy is not immune to risks. The potential loss would be the difference between the two strikes, minus the credit received.

If the asset price is lower than the strike price at the expiration, both put options will expire ITM, and a loss would be recorded.

For example, a crypto investor is bullish on Bitcoin,  whose current price is at $48, 000. The investor sells a put option for a premium of $2,400, at the strike price of $48,000 with a 1-month date to expiry (expiring in one month). Concurrently, he buys another put option for $800 with a strike price of $45,000 expiring in one month. The investor receives a net profit of $1,600 ($2,400-$800 premium paid) for the two options. This is called the “

If things go south and Bitcoin’s price drops to between $45,000 and $48,000 at the date of expiry a month later, the investor would likely make a loss. If Bitcoin’s price goes even more bearish and drops below $45,000, the investor would incur a max loss capped at $45,000 - $48,000 + $1,600 = -$1,400.

This is the inverse of the bull put strategy. When an investor feels moderately 

 is the right way to go, as it reduces cost and risk while simultaneously offering the chance to profit.

To execute this strategy, you buy a “buy put” option and simultaneously purchase a “sell put” option with a lower strike price. Both contracts need to be of the same asset and same expiration date.

For example, if the asset is trading around $65, you can buy a strike put at that price (or around it) for $5 (this equals $500 as premium), while selling another put option that has a strike of $60 at $3 (this equals $300). Note that the two options are to be executed at the same time. 

It’s ideal to place the orders as a spread to do this. The net debt is $2 per spread. The premium of $200 is the maximum loss that can be recorded. If the price drops to $50, you get a gross spread of $5, while the net spread is $3 (this equals $300).

 makes use of four contracts: two puts (a long and a short) and two calls (a long and a short). They’ll all have four strike prices and the same expiration date. It profits from low volatility (small moves in prices). 

The American-style options contract is a method where the execution of the contract can happen before the expiration date stated in the contract. In comparison, the European-style options contract requires that the contract be settled only after the contract's expiration.

A cash-settled options contract is a procedure of settlement in which the contract is settled by the cash equivalent of the underlying asset upon execution if the contract is in their favor. But physically-settled contracts are settlement styles in which the underlying asset is used to execute the contract. 

For example, if Sandra closes her call options position that allows her to buy 10 

 at a strike price of $136, and the market price is $170, instead of receiving a credit of $340 as gross profit ($170 - $136 × 10), she’s credited with the amount of Litecoins the profit can buy, which is 2 LTC ($170 + $170 = $340). 

In stock options trading, 1 contract is equivalent to 100 stocks. Thus, when the price of a stock goes up by $1, the investor profits $1 x 100 stocks = $100. 

However, when it comes to crypto options trading, using BTC as an example, 1 contract = 1 BTC. When BTC’s price goes up by $1, the profit earned is $1 x 1 coin = $1. To get the same $100, an investor will have to buy 100 contracts or 100 BTC. 

These two financial derivatives are remarkably similar, as they both track underlying assets and allow people to speculate on them. They also allow traders to take long (call) and short (put) positions.

However, their features differ slightly in their modes of operation. Let's see how.

An options contract allows you to buy an underlying asset at a price other than the current market price. It also gives you the “option” of buying/selling the underlying asset. However, in a 

, this move is an obligation, a duty that isn't based on the holder's discretion. This means that if the market moves against the direction of a futures contract, the position will be closed at the expiration date. As it’s a type of 

Compared to options contracts, futures contracts are high-risk/high-reward. Unlike options contracts, where the maximum potential loss is limited to the premium paid for the contract, with a futures contract the loss depends on how much the price has moved away from your entry at the expiration date. The stakes are high with futures: While there’s potential to make a lot of money, you could potentially lose a lot of money as well.

) are contracts with no expiration date. They allow traders to close their positions (if they’re gaining) at any time. At times, their 

 if the market moves away from their predictions as a result of the 

This means that all perpetual contracts are settled in cash, as there is no expiration date when they’ll be physically settled. That is, all perpetual contracts are American-style.

The crypto-financial space is relatively new, and complex instruments are just gaining a foothold in 

 technology-backed assets. The dearth of regulation is concrete proof of this assertion. However, we can't deny the potential that cryptocurrencies have in revolutionizing the financial space. 

Options trading is widely gaining popularity in the crypto ecosystem. With potentially high-profit margins and calculated risk, consider adding crypto options to your portfolio for diversification.


Crypto Options: Why They Deserve a Place in Your Portfolio

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