Litecoin Foundation Partners With Digital Asset Manager Metalpha to Develop Hedging Products for LTC Miners

Fondation litecoin is a non-profit organization that maintains and develops blockchain products of the same name.

The specific research areas of the partnership will include the development of spin-offs, the facilitation of the use of renewable energy, improving energy efficiency and reducing carbon emissions from mining activities on the Litecoin grid.

Metalpha shall develop financial derivatives for tokens ltc, It also aims to support cryptominers with market risk hedging products and reduce the environmental impact of crypto mining operations.

Hedging is a risk management strategy used to offset investment losses by taking an opposing position in an associated asset.

Cryptographic mining is a resource-intensive business that relies on powerful computers to process and validate transactions for labor demonstration blockchains, like bitcoin and litecoin. Minors receive tokens from the network as a reward, which are generally sold on the open market for high costs and profit.

However, lower prices for cryptos have resulted in turnover for miners because they are unable to convert high costs. That's where the coverage comes in, which allows the miners to stay in business and generate money, regardless of what the market is doing.

Meanwhile, Metalpha and Litecoin said they will work together with universities and research institutions to promote sustainable blockchain innovation, support public education within the Litecoin network, and raising awareness about the network, adoption, and scalability.

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