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Flynt launches the industry’s highest return product on Bitcoin – Press release Bitcoin News
press release
PRESS RELEASE. Flynt Finance, the Singapore-based cryptocurrency financial services company co-founded by former derivatives exchange operators and analysts, launched a platform for crypto-structured products last week. The relatively high yield (up to 50% APY) on Flynt has attracted strong interest from crypto interest enthusiasts, especially during the bear market where volatility is harder to find.
Cryptocurrency markets are often seen as the place of high risk and high return due to the volatile price movements. Managing risk for such assets can be complicated, especially for those without a financial background.
A popular way to hedge is to use options by entering positions that are the opposite of current assets. For example, holding spot bitcoin and buying a put option when you expect a downward price action. Although still a nascent field compared to perpetual futures, crypto options are a great way to hedge your volatile positions both during choppy times and strong trends.
There are also various structured products that provide returns with combined strategies for options, lending and futures. One of the simplest and most popular structured products is the covered call strategy or a cash covered put strategy. Even the legendary Warren Buffet has famously used this to earn premiums on Coca-Cola shares.
Since 2021, there has been a rush to offer covered call strategies on various cryptocurrencies for yield-hungry crypto investors. These strategies have grown rapidly since their inception and have held up surprisingly well during the recent downturn.
After thorough research and backtesting of various strategies, the team at Flynt decided to launch their very own structured product strategy, “BTC Covered Call Strategy x5”. This strategy sells call options on a weekly basis and reinvests the premium earned in the following week. Based on the full 3-year set of trading data from Deribit (a leading cryptocurrency options platform), the team derived a proprietary strike price selection algorithm that maximizes returns and minimizes the chance of taking losses. An important differentiator for Flynt’s product is the use of leverage. Flynt applies up to 5x leverage to its strategies to both increase returns and reduce the chance of taking a loss by choosing an additional OTM strike price. According to their backtestingthis resulted in an average APR of 47% (including losses) compared to the industry average of around 15% (excluding losses).
David Seo, CEO of Flynt Finance mentions that “for most people, an unleveraged covered call strategy should be just fine, but for those who want to take more risk for higher returns should definitely try Flynt. Through Flynt, we aim to provide access to crypto investment strategies for a variety of risk profiles.”
About Flynt Finance and the team
Flynt Finance is a one-stop asset management platform offering structured products on cryptocurrencies. The team consists of blockchain OGs who have experience in delivering a wide range of services including cryptocurrency exchanges, blockchain protocols and dApps together since 2015. Flynt’s CEO, David Seo was COO of a leading South Korean exchange, and Victor Park, CTO has been building robust stock and cryptocurrency trading platforms for the past 20 years. Other core members have extensive experience in various fields, including financial big data modelling, asset custody, derivatives trading and structured product trading.
Flynt’s team launched the new initiative with a bold mission to bring financial freedom to everyone regardless of geography, technology and privilege.
To ensure transparent communication to clients about how the deposited funds are used, each strategy carried out by the team can be found on Flynt’s website in detail.
Flynt currently offers bitcoin hedged call strategies that generate up to 50% APY, and plans to continue to meet the needs of the ever-evolving crypto investor through innovative products.
This is a press release. Readers should do their own due diligence before taking any action related to the Promoted Company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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