How Does the Implied Volatility of an Option on a Low-Hash-Rate Coin Compare to a High-Hash-Rate Coin?

The implied volatility (IV) of a low-hash-rate coin's option is typically higher than that of a high-hash-rate coin. This is because the low security (low hash rate) introduces a greater risk of a 51% attack and subsequent catastrophic price event.

Option traders demand a higher premium to take on this elevated systemic risk, which is reflected in the higher IV. High-hash-rate coins have lower IV, reflecting their more robust security and lower tail risk.