Cryptocurrency markets are characterized by great volatility, which makes investing in them an involving process. 2017 was a great year for cryptocurrencies as the valuations of most coins increased by more than 30 times since the start of the year.
However, despite the growth in cryptocurrencies witnessed, the total market capitalization of crypto assets is still insignificant compared to the market capitalization of S&P and other traditional asserts. This is because of the many risks associated with investing in crypto assets. Additionally, cryptocurrencies are characterized by extreme volatility and there are complexities involved in securing virtual coins through cold wallets.
How 108 Token Crypto Investment Tracker Works
The token generator and the 108tokens seek to address these issues. The token generator provides a low-cost access to a diversified basket of highest valued virtual coins. The token generator is a dynamic digital product that tracks the performance of the top 15 virtual coins. The generator makes it easy for the investor to be exposed to a wide array of crypto assets while minimizing the risks.
The investor has first to buy the 108tokens. The platform then invests the proceeds in a basket full of different cryptocurrencies. The token basket is made up of the top 15 crypto assets by supply adjusted market capitalization. The token generator believes that this is a better indicator than the current market capitalization.
A cap of 20% will be levied on the weights of individual components of the basket of crypto assets to provide a diversified exposure to investors. The rebalancing of the portfolio will be done monthly to match the criteria of the top 15 digital coins and the 20% weight. This monthly rebalancing reduces trading costs while keeping the tracking error-free. The monthly rebalancing also allows for the implementation of the cold storage solutions.
The token generator assets will be managed using traditional passive investment policies but on some rare occasions, manual intervention might be used when discretion is needed in the buying and selling of the token generator assets.
The NAV of the token reflects the value of the 108 index. The token gets its liquidity from the exchanges, as it is compatible with exchanges that support ERC20 tokens. Users can sell or buy the tokens on exchanges that are always open. The tokens are intended to provide the token holders with a convenient, low cost, transparent, and a diversified way for easy investment in the blockchain economy.
108 Token & ICO Details
This is an ERC-20 token based on the Ethereum network. It will later be traded on decentralized and centralized exchanges. The tokens that will be available will be 5 million, 96.5% of these tokens will be available for purchase during the token sale. The minimum expected contribution from investors will be 0.1 BTC, 0.5 ETH or $3,000 in fiat currency.
There will be no token creation or mining after the token sale period. Investors will get their tokens after the sale is successfully completed. Investors can buy the tokens in BTC or in ETH. The USD equivalent amount of the BTC or ETH invested will be locked at the time of investment in accordance with the market rates and considered as the investor’s contribution.