Amun Short Bitcoin Token: A Token Tracking Bitcoin’s Inverse Performance
The Amun Short Bitcoin Token whitepaper was released by the Amun team in May 2020, aiming to address the growing demand for hedging and shorting in the crypto market, and to provide investors with a convenient, cost-effective way to gain negative exposure to Bitcoin and hedge against Bitcoin price declines.
The theme of the Amun Short Bitcoin Token whitepaper can be summarized as “Amun Short Bitcoin Token: a token designed to track Bitcoin’s daily inverse performance.” The unique feature of Amun Short Bitcoin Token lies in its daily reset mechanism, providing -1x daily inverse performance of Bitcoin without the lending capital required for traditional shorting; the significance of Amun Short Bitcoin Token is that it offers investors a simple, accessible, and regulated way to hedge Bitcoin price risk or profit from its decline, enriching investment strategies for crypto assets.
The original intention of Amun Short Bitcoin Token is to solve the lack of direct and convenient shorting tools for investors in the Bitcoin market, as well as the need to hedge against price decline risk. The core idea presented in the Amun Short Bitcoin Token whitepaper is: by constructing a daily reset -1x inverse tracking token, investors can effectively capture short-term negative price movements of Bitcoin in the form of a traditional financial product.
Amun Short Bitcoin Token whitepaper summary
What is Amun Short Bitcoin Token
Imagine you and your friend are watching Bitcoin’s price movements. You think Bitcoin might go down next, while your friend thinks it will go up. If you want to profit from Bitcoin’s decline but don’t want to borrow Bitcoin to sell it directly (which is a bit complicated), products like Amun Short Bitcoin Token offer a relatively simple way to do so.
Amun Short Bitcoin Token (BTCSHORT), as the name suggests, is a token for “shorting Bitcoin.” Simply put, it’s a financial instrument designed to track the inverse daily performance of Bitcoin’s price. This means if Bitcoin’s price drops in a day, BTCSHORT’s price theoretically goes up; conversely, if Bitcoin rises, BTCSHORT’s price goes down.
Some similar products also have a “leverage” effect, such as a “3x short Bitcoin token.” This means if Bitcoin drops 1%, this 3x short token would theoretically rise 3%. But at the same time, if Bitcoin rises 1%, it would fall 3%. This leverage effect amplifies gains but also amplifies risks.
This project was launched by Amun (which later merged with 21Shares). It’s more like an “exchange-traded product” (ETP) or similar financial instrument that provides short Bitcoin exposure in the crypto market.
Project Vision and Value Proposition
Due to the lack of an official whitepaper, we cannot know the specific vision or mission of Amun Short Bitcoin Token. But from its product design, its core value proposition is:
- Providing a convenient shorting tool: For users who believe Bitcoin’s price will fall and want to profit from it, BTCSHORT offers a relatively simple way, without the need for complex margin trading or lending operations.
- Potential for risk hedging: Some Bitcoin holders may buy BTCSHORT to hedge against the risk of Bitcoin price declines, like buying “downside insurance” for their Bitcoin assets.
It’s important to note that such products are usually designed for short-term trading and hedging, as their daily rebalancing mechanism may lead to long-term holding results that differ from expectations.
Technical Features
Amun Short Bitcoin Token itself is not an independent blockchain project; it’s more like a token issued on an existing blockchain (such as Ethereum), with its technical features mainly reflected in its operating mechanism:
- Tokenization: Encapsulating complex shorting strategies into a token that can be traded on the blockchain.
- Daily rebalancing: Such leveraged tokens usually adjust their underlying asset holdings daily (e.g., via derivative contracts) to ensure their leverage ratio (e.g., -1x or -3x) remains unchanged at the end of each trading day. This mechanism is core, but also a source of risk, especially during periods of high market volatility, which may cause a “decay” effect.
Details about its specific smart contract implementation, audit reports, etc., are not disclosed in public information.
Tokenomics
BTCSHORT’s tokenomics are very different from those of traditional blockchain project tokens (like Bitcoin or Ethereum). It does not involve mining, staking rewards, or complex inflation/burn mechanisms. Its value comes directly from the inverse performance of Bitcoin it tracks.
- Token symbol: BTCSHORT
- Issuing chain: Usually issued on mainstream public chains like Ethereum, as an ERC-20 token.
- Total supply and circulation: According to CoinMarketCap data, BTCSHORT’s circulating supply is unverified, and its self-reported market cap is $0. This indicates extremely low market activity, and it may have ceased trading or become inactive.
- Token utility: Its main use is as a financial tool for shorting Bitcoin or hedging risk. In theory, it could also be used for arbitrage or staking (as mentioned by Bitget), but given its current market status, the actual feasibility of these uses is questionable.
Team, Governance, and Funds
Amun Short Bitcoin Token is a product launched by Amun (later merged with 21Shares). 21Shares is a well-known issuer of crypto exchange-traded products (ETPs), with a reputation in both traditional financial markets and the crypto space.
Since this is a financial product rather than a decentralized project, there is no independent “team” or “governance mechanism” operating like a decentralized autonomous organization (DAO). The management and maintenance of the product are handled by the issuer (21Shares). Regarding specific fund reserves or “treasury” information, as the product issuer, 21Shares manages the underlying assets according to its product design and regulatory requirements, but such information is usually not disclosed publicly like blockchain projects.
Roadmap
For financial products like Amun Short Bitcoin Token, there is usually no “roadmap” like a blockchain protocol. Its launch itself is a major milestone, namely Amun’s release of the world’s first short Bitcoin ETP in 2020.
Subsequent developments are more about product maintenance, compliance updates, or the possible launch of new product lines, rather than technical iteration or community building. No public information has been found regarding BTCSHORT’s future plans.
Common Risk Reminders
Friend, although this product sounds interesting, it comes with very high risk and is definitely not suitable for everyone. Please pay attention to the following points:
- High volatility and leverage risk: Leverage amplifies gains, but also amplifies losses proportionally or even more. Bitcoin itself is highly volatile, and with leverage, the risk multiplies.
- Daily rebalancing “decay”: This token usually rebalances its position daily. In a continuously choppy market (i.e., prices swing back and forth without a clear direction), even if Bitcoin’s price eventually returns to its starting point, BTCSHORT’s price may keep falling due to the cost and mechanism of daily rebalancing—this is called the “decay” effect. Therefore, it is not suitable for long-term holding.
- Liquidation risk: In extreme market conditions, leveraged positions may face liquidation, resulting in total loss for investors.
- Liquidity risk: According to CoinMarketCap data, BTCSHORT’s current trading volume and market cap are extremely low, even zero. This means you may have difficulty buying or selling, or may only be able to trade at very unfavorable prices.
- Issuer risk: The product’s operation depends on the issuer’s management and reputation.
- Not investment advice: Once again, the above information is for reference only and does not constitute investment advice. The crypto market is extremely risky; please do thorough research and make decisions cautiously according to your own risk tolerance.
Verification Checklist
Due to BTCSHORT’s extremely low market activity, here are some pieces of information you can try to verify, but note that much data may no longer be updated or available:
- Block explorer contract address: According to CoinMarketCap, BTCSHORT’s contract address is
0xcbe79ceca09092648995b2ccdf91ca5ecd1edec9. You can check this address on Ethereum block explorers (such as Etherscan) to view its transaction history and holders.
- GitHub activity: Since it is a financial product rather than an open-source protocol, it usually does not have a dedicated GitHub repository to show development activity.
- Official announcements/news: Search the official websites and press releases of Amun or 21Shares to see if there is any latest information or shutdown notice about BTCSHORT.
Project Summary
Amun Short Bitcoin Token (BTCSHORT) is a special token launched by Amun (now 21Shares), designed to allow investors to profit from or hedge against Bitcoin declines by shorting Bitcoin. It achieves this by tracking the inverse daily performance of Bitcoin’s price (possibly with leverage). The main advantage of this product is its convenience, allowing ordinary users to participate in shorting without complex financial operations.
However, BTCSHORT also comes with extremely high risks, especially due to its leverage effect and the “decay” effect caused by daily rebalancing, making it unsuitable for long-term holding. In addition, according to the latest market data, BTCSHORT’s current market activity is extremely low, with almost zero trading volume and market cap, indicating it may no longer be active or has dried up liquidity. Therefore, any user considering such products must fully understand their operating mechanisms and potential risks, and recognize that this is not a traditional investment, but a high-risk speculative tool.
Remember, the crypto market is unpredictable, and any investment may result in loss of principal. Before making any decisions, be sure to conduct your own independent research (DYOR) and consult a professional financial advisor. For more details, please research on your own.