Futereum (FUTR) is a unique crypto in that it harnesses the utility of a much larger cryptocurrency in order to recreate a derivative crypto, with a range of comparable values. Ultimately, what distinguishes FUTR from the ETH that is held in its smart contract until it is activated in an exchange for that ETH are the pair of algorithms that divide the issuance quantities of FUTR issued per ETH and the re-exchange of ETH with FUTR tokens. (For the uninitiated reader, you can find plenty of great summaries of this process here at The Currency Journal; here and here are two of my favourites, however.)
But what about the potential for bitcoin (BTC) holders in terms of FUTR? It surprises me not to see this topic more often mentioned, given that BTC/ETH is the most liquid cryptocurrency market there is, and also given the relatively high volatility of this trading pair. Here is just the previous week for this rapacious pair of digital assets:
Drilling down further into the past month gives us a unique insight into the multiple possibilities of value enhancement that FUTR offers BTC – and in turn, other digital asset – investors.
If we tabulate the returns over the past one month calendar period, what show up are notable days when, where matching the maximum amount of ETH strength with BTC weakness and vice-versa, one identifies 1 ETH or more in potential inter-day trading value:
In the above tabulation, prepared for us by one of the foundation research staff early this morning (and thus fresh) using CoinMarketCap.com data, we can see that between the pairs exists an average of 4.5 ETH in clear tradable profit per day that is exclusive to the BTC/ETH pair.
Now multiply this amount by the number of FUTR mined in Level 1, which is where we are now, and it appears that just by playing with BTC and buying into and selling out of ETH, and then using the ETH procured from such trades to mine FUTR, that an average of 507 mineable FUTR per day exists within the universe of this pair.
Assuming that the ETH procured from just this one trading month were reinvested in Level 1 FUTR mining, the resultant total of all FUTR procured, totalling 15,235 FUTR, would yield at point of swap an Ether-based return of 962 ETH, based on a daily investment of around 20 ETH per day (for just one calendar month):
Now suppose however that a Bitcoin trader wished to harness the potential algorithm-enhanced volatility cycle of FUTR, the return profile increases substantially, particularly in the case of the final Levels:
Here, we can see that the return profile of such profits invested consistently into FUTR and rolled over month-on-month gather momentum to the point where a near-6000% return on what was initially a 100% return trading strategy are realised at the last level of FUTR mining. This represents a 60x premium on the ordinary intra-day BTC/ETH pair trading that many crypto investors are by now too bored of to play at all!
The examples herein are far from perfect; naturally, no pair trader can consistently make money day-in, day-out. Neither will the crypto market always fare in such a volatile fashion among the top 2 or 3 cryptos as is the case here. But the concept behind the reality that FUTR enhances what might ordinarily seem a dull but safe BTC/ETH pair trading event and gives it a new lease of life cannot be overlooked.
Bitcoin investors may indeed turn out to be some of the heaviest weighted FUTR holders around.
Editor’s Note: Alex Esmonde-White is a member of the Futereum Foundation Board of Directors.