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In Derivatives, How Can the Price of a Utility Token Be Hedged Using Futures Contracts?

A company that accepts a utility token for services can hedge against a drop in the token's price by selling a futures contract. By taking a short position in the futures market, the company locks in a future selling price for the token.

If the token's spot price falls, the loss in the value of the received tokens is offset by the profit from the short futures position. This allows the company to stabilize its future revenue stream.

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