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7 Short Tokens Soar as Investors Aim to Profit From Today’s Crypto Crash

Feeling bearish on Bitcoin (CCC:BTC-USD) and other cryptocurrencies today? Or are you simply looking for a way to profit from the widespread crypto crash? Look no further than short tokens, offering leveraged short exposure to top cryptos.

A concept image with a bear figuring standing on top of crypto tokens.

Source: Shutterstock

So what exactly is happening?

Today, investors are honing in on a crypto crash. Bitcoin prices plummeted below $35,000 for the first time in weeks, and Ethereum (CCC:ETH-USD) plunged back to the $2,000 level. Other altcoins like Cardano (CCC:ADA-USD) and Dogecoin (CCC:DOGE-USD), which have recently touched all-time highs, are also seriously depleted on Wednesday.

Driving the downward movement are a variety of factors, including a recent decision by Elon Musk to suspend taking BTC as a payment for Tesla (NASDAQ:TSLA) products. Although the influencer affirmed today that he has diamond hands, his concerns over crypto energy consumption have tanked the market. Some estimates highlight that the crypto market has lost $600 billion in value since his tweets.

Adding to the pressure is regulatory action in the United States and abroad. Today, the Office of the Comptroller of the Currency is prepared to push for enhanced scrutiny in the crypto space. Yesterday, Reuters reported that China was digging into its anti-crypto stance, warning consumers of its dangers and further restricting financial institutions. After incredible bull runs, concerns about the future of cryptocurrency are weighing down investors in a big way.

With all this in mind, some investors are looking for ways to profit from the crypto crash. Short tokens, cryptocurrencies that offer short exposure, are cropping up as top options. Given the heavy selling in Bitcoin and its peers today, these cryptos are seeing gains of more than 100% in the last 24 hours.

So how do they work? And what short crypto tokens should you be watching today?

Investors Play the Crypto Crash With Short Tokens

Essentially, these short tokens allow investors to gain short exposure to top cryptocurrencies. In other words, if the price of Bitcoin goes down, the price of a short Bitcoin token will go up. These tokens often incorporate leverage, meaning that the exposure is magnified.

Take for instance the Amun Bitcoin 3X Daily Short (CCC:BTC3S-USD) token. This crypto offers investors exposure to -3X the daily return of Bitcoin. Binance also offers a handful of these short tokens, like TRXDOWN (CCC:TRXDOWN-USD) and LINKDOWN (CCC:LINKDOWN-USD), corresponding to Tron (CCC:TRX-USD) and Chainlink (CCC:LINK-USD).

Here are seven short tokens gaining traction now:

  • Amun Bitcoin 3X Daily Short (CCC:BTC3S-USD)
  • TRXDOWN (CCC:TRXDOWN-USD)
  • LINKDOWN (CCC:LINKDOWN-USD)
  • 3x Short EOS Token (CCC:EOSBEAR-USD)
  • 3x Short Litecoin Token (CCC:LTCBEAR-USD)
  • Amun Ether 3X Daily Short (CCC:ETH3S-USD)
  • 3x Short Bitcoin SV Token (CCC:BSVBEAR-USD)

So what is the bottom line? Although these cryptos are top performers today, they may not be the best paths forward for long-term crypto lovers. In fact, Binance cautions that its leveraged tokens come with great risk. The exchange operator says its leveraged tokens should not be long-term holdings, noting that they come with built-in decay.

For short-term traders, these soaring tokens may be a way to ease the pain of the crypto crash. For other investors, a look at altcoins with healthy forecasts could be a better bet.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Sarah Smith is the Editor of Today’s Market with InvestorPlace.com. 


Article printed from InvestorPlace Media, https://investorplace.com/2021/05/7-short-tokens-soar-as-investors-aim-to-profit-from-todays-crypto-crash/.

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