Some Terminology

Last Updated on April 21, 2022

  • Crypto Trilemma: The attempt to solve the problems posed by the three basic tenets of blockchain technology – security, scalability, and decentralization.
  • CME Group: The world’s largest financial derivatives exchange, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes and cryptocurrencies future
  • Self Directed: You have complete control over how you invest your money. That means you aren’t locked into a narrow selection of funds picked by a financial advisor or your employer.
  • Futures Instruments: Futures are derivative financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and set price. A futures contract allows an investor to speculate on the direction of a security, commodity, or financial instrument
  • Options: Financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date. Call options and put options form the basis for a wide range of option strategies designed for hedging, income, or speculation.
  • Commodities: Basic raw materials that serve as the basis for the production of everyday goods and services.
  • CPI Consumer Price Index: Inflation
  • Open Interest: Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled.
  • Deribit Market: The first cryptocurrency options exchange in the world. Even though it was a highly challenging task, in slightly more than two years, the team finished working on system development. In June of 2016, Deribit was officially launched.
  • Derivatives: Financial contracts, set between two or more parties, that derive their value from an underlying asset, group of assets, or benchmark. Can trade on an exchange or over-the-counter. Usually leveraged instruments, which increases their potential risks and rewards.
  • Tradfi: Consumer Banks, Investment Banks, Stock Markets, FinTechs, Hedge Funds, Venture Capital and Private Equity, Financial Regulators
  • Mergers and acquisitions (M&A) is a general term that describes the consolidation of companies or assets through various types of financial transactions, including mergers, acquisitions, consolidations, tender offers, purchase of assets, and management acquisitions.
  • DAO – Decentralized Autonomous Organization: An org that used blockchain tech collectively manage assets, grow a portfolio, and allow all members within the DAO to vote on the direction of the community/org. You can create a DAO with Boralis or Aragon. A common job title of the future will be DAO Community Manager and financial managers.
  • Plunge Protection Team (PPT): A colloquial name given to the Working Group on Financial Markets by The Wall Street Journal. The Plunge Protection Team’s official mission is to advise the U.S. president during times of economic and stock market turbulence. Critics fear the Plunge Protection Team doesn’t just advise, but actively intervenes to prop up stock prices—colluding with banks to rig the market, in effect.
  • Tokenomics: A self-funding strategy for web3, blockchain based startups. The development and deployment of a token within the ecosystem of an ICO and the underlying projects.