One of the common criticisms of blockchain tokens is the high volatility of individual assets. To counter this, there have already been a few attempts at creating token pools, or tokens that represent a basket of other tokens in order to reduce volatility and risk, much like ETFs and mutual funds do for stocks.

We expect further attempts at building more stable and better-hedged token products. One possibility would be a new insurance product, protecting against negative volatility in return for a fee. While in practical terms a similar effect can be achieved with futures and options, insurance is a concept more familiar to ordinary consumers and retail investors who have taken an interest in the token markets. We expect that there will be attempts to bring all of these to the market.