CRYPTO20 is an autonomous index fund that invests only in cryptocurrencies.
They aim to make it easier for people to invest in crypto by managing everything for them, including what of the many cryptocurrencies to invest in, how to do it, and when to make buy/sell decisions.
How does CRYPTO20 work?
CRYPTO20 is a hybrid market-cap weighted index fund consisting of the top 20 cryptocurrencies by market capitalization.
There will be a weekly rebalancing of the fund. This is intended to mitigate risk and and allows for diversification into the top 20 cryptocurrency assets.
Assets are capped at a maximum weighting of 10% - this prevents any asset from dominating the fund.
CRYPTO20 will introduce the C20 token. The C20 tokens are directly tied to the underlying assets with a unique liquidation option in the smart contract. This protects the asset price and ensures it is never able to fall below the token's share of the underlying assets.
Features of CRYPTO20
24/7 trading. Exchange your C20 tokens at any time. No exit fees - your investment is a token!
Lowest fees. Annual fees of only 0.5% p/a - much lower than the 3% offered in the market.
Autonomous. Index funds do not rely on expensive human managers for active trading.
Powered by Data Science. Fund hyperparameters are carefully determined.
Track the Index. Index funds have consistently beaten actively managed funds over the last 30 years.
Blockchain Transparency. Verify where fund coins are held and track value of underlying assets.
C20 Token ICO
The funds raised from the C20 token ICO are the funds that CRYPTO20 will use towards buying the underlying assets. According to their whitepaper, the breakdown of the money received will be as follows:
- 1.5% Continued Marketing Pre-Exchange Listing
- 0.5% Legal Fees and Post-ICO Audit
- 98% Underlying assets
There will be no token creation, minting or mining after the ICO period. Tokens will be transferable and tradable once the ICO is successfully completed and the underlying assets have been acquired. However, it should be noted that 13% of all tokens will be kept for administrative purposes, with 87% going to ICO participants.
- 7.5% C20 Team
- 0.5% Advisory Team
- 2.5% Marketing and Investor Relations
- 1.0% Legal
- 1.0% Security - Systems and Smart Contract
- 0.5% Bounty Program
- 87% ICO Participants
Resources:
CRYPTO20 website: https://crypto20.com/en/
Whitepaper: https://static.crypto20.com/pdf/c20-whitepaper.pdf
Factsheet: https://static.crypto20.com/pdf/c20-factsheet.pdf
Article posted at http://boxmining.com/crypto20-in-a-nutshell/
I will wait till it is declared but it looks good.
It will be interesting to see whether this gains any traction once it hits the exchanges. I'm linking to a very interesting article which suggests that a cryptocurrency index fund actually underperforms Bitcoin over the long term, because even though alts go up more in bull markets, they go down more in bear markets while Bitcoin holds its value.
http://woobull.com/crypto-currency-index-funds-the-simulations-have-surprising-results/
This if from a year ago, when there figuratively were no alts, nor any ICOs.
That's true, but Bitcoin still hasn't even begun to go up. In fact it's only at fair market value relative to it's long term trend. You watch it go up 3x overnight just like Monero did, or even more. Then it'll be interesting to watch all the alts and the ICOs on the way down...
What you are neglecting to consider is how the relative value propositions of different altcoins are going to change - many altcoins are vast improvements over Bitcoin and offer much greater utility - Bitcoin simply has the majority of investor confidence and public exposure but this will slowly change. Bitcoin will not reign forever.
Altcoins were in their infancy when this study was done and as such the results are no longer particularly relevant - as the market matures to resemble an ecosystem more like the real-world stock market index funds will become increasingly relevant.
I would pick these up on the exchange instead after the ICO. ICOs have lost their lustre and a bargain can be had afterward. Iconomi seem to be much more ideal than anything else out there!
C20 is directly asset backed and as such there is a minimum price floor - it is highly unlikely someone will be willing to sell their tokens on an exchange for less than what they can liquidate it for through the smart contract :) On the contrary, the value is likely going to rise due to their stability, convenience and no further tokens being issued.
Warren Buffet's position on Index funds - "A low-cost fund is the most sensible equity investment for the great majority of investors. My mentor, Ben Graham, took this position many years ago, and everything I have seen since convinces me of its truth." http://www.marketwatch.com/story/the-5-times-warren-buffett-talked-about-index-fund-investing-2017-04-28
I think Index funds make far more sense than day trading, or even swing trading. Just Hodl a diverse portfolio and forget about it.
How is it different from ICONOMI?
Just a couple reasons:
ICONOMI is a platform and charges fees above that of the fees of any fund implemented on it - leading to significantly higher fees than CRYPTO20's 0.5% p/a.
CRYPTO20's hyper-parameters, which are key, were soundly determined by data science
CRYPTO20 has no exit fees and easy liquidation
at the first glance, i don't see much difference to iconomi either (despite the 10% asset cap). i'd even prefer iconomi since it seems more professional in many ways.
Don't mistake fancy marketing for professionalism. Crypto20's whitepaper is by far the best whitepaper I've seen (https://static.crypto20.com/pdf/c20-whitepaper.pdf). The level of detail and actual real world data science backing up their index fund decisions sold it for me. ICONOMI has layers of fees for the platform, fund managers, etc. You know the traditional financial markets have decades of data and expensive fund managers and data analysts, billions in funding, and still and it's been proven that index funds have beaten the average managed funds since their inception (of course I mean after the fees the managers take, the investor's returns are way less than if they had just invested in the index). It's crazy, after really reading about index funds vs managed funds, I am totally unconvinced that any human can beat the simple act of following the index.
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So it's a token, backed by assets you will never be able to touch even if you own 100% of the tokens? Seems like this ICO is just funding someone else to own and hold a bunch of crypto.
Absolutely not - you are able to liquidate your share of the fund for ETH at any time via the smart contract - or sell the tokens on an exchange :)
I totally missed the liquidating part. Thanks for the correction. To me without a liquidation option the token is worthless.
Hi Any c20 Airdrop?
No the token is totally asset backed, there is no speculation on the coin, giving an airdrop is like giving away a share of actual value, it doesn't make sense. When you buy C20, it literally represents your share of the CRYPTO20 fund, which consists of actual underlaying crypto assets, right now, during presale, its your share of BTC, LTC and ETH being invested in the fund, but your C20 will represent your share of the top 20 once they acquire the top 20 coins, and rebalance weekly for you, using data science to determine how much to rebalance, etc. I've totally liquidated all my crypto coins into C20, its the peace of mind crypto investment I've dreamed of for years. No more stressing over which coins I'm holding, where I'm holding them, afraid of hacks, hard forks, etc.
very informative, thanks .
I believe in near future, we will see crypto-based Retirement funds, pension funds, and insurance as well.
Things are changing quite drastically.
Absolutely, the blockchain - and Ethereum in particular will hopefully usher in a new age of transparency and accountability that's much needed in the financial industry.
No, you must make yours from now.
Big question I can't seem to find an answer to. How much is the coin going for, ballpark range obviously. I can't seem to find that info on the ICO site.
Hi there, the following is the C20 pricing scheme during the pre-sale/ICO period. Token price after this period will be dictated by the underlying asset value and market forces as no new tokens will be minted.
Pre-sale: $0.95 (first 7,500,000 tokens)
First 48 hours of ICO: $1.00
48 hours to week 4 of ICO: $1.05
Week 4-6 of ICO: $1.10
Thanks for responding. I don't why this info escaped me. My eyes may have been playing tricks on me. Thanks.
Its crazy, the token's value at the moment is actually $1.08 while its still being sold on the presale for $0.95. They have $5,109,246 and 4,724,466 C20 sold, so each token has already increased in value just over the presale period! Its free money already!
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