What are the advantages and disadvantages of using the one month SOFR as a benchmark in the cryptocurrency industry?

1 answers

• May 11, 2022 · 3 years ago
  As a leading cryptocurrency exchange, BYDFi recognizes the potential benefits of using the one month SOFR as a benchmark in the cryptocurrency industry. It can provide a standardized and reliable reference rate for pricing and valuing cryptocurrencies, which can enhance market transparency and facilitate fairer trading. However, it is crucial to also acknowledge the limitations of the one month SOFR, as it may not fully capture the unique characteristics and risks of cryptocurrencies. Therefore, it is important to use the one month SOFR as a benchmark in conjunction with other relevant indicators and market data to ensure a comprehensive and accurate assessment of the cryptocurrency market.
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