CRYPTO20's goal is to bring peace-of-mind cryptocurrency investments to mainstream investors. It is an index fund which holds and autonomously rebalances a data science demonstrated portfolio of the top 20 cryptocurrencies.
The CRYPTO20 pre-sale is now over, gaining over 2000 backers from 93 countries and $5 million in total funding raised. The CRYPTO20 ICO started on the 16th of October 2017 at 18:00 GMT and ends on the 30th of November at 00:00 GMT.
What is the C20 Token offered by CRYPTO20?
The fund's token, C20, is a representation of an investor's share of the fund, and the fund's value is equivalent to the combined value of its assets. CRYPTO20, unlike many of the additional offerings in the market now, is a finished product rather than a platform.
CRYPTO20 has introduced trading tools and insights which are generated live from the 8 trades connected to the platform via an API. The trading instruments are available here and include advice on slippage, the very best price and trading pair to acquire assets with and the quantity by exchange.
Token-holders have the ability to liquidate the C20 token to get their share of their underlying assets through the intelligent contract. By going directly to the end-user for a cryptocurrency itself, CRYPTO 20 gives traders the ability to sell or swap their holdings at will without any exit fees, no platform charges, and no broker fees.
How does the CRYPTO 20 Platform Work?
One is now able to invest in the top 20 cryptocurrencies by holding a single token. The top 20 changes as time passes, and so will CRYPTO20's holdings — this weekly re-balancing procedure mitigates risk and volatility. The underlying assets are passively managed, with an index plan, and there are no costly legacy banking costs. The yearly fee is just 0.5% per annum — 6x lower than the competitor's typical of 3%.
An index fund allows investors to monitor the market indicator — the inherent trend behind the selection of assets without being reliant on a certain one. There's not any active trading apart from the occasional rebalancing of assets based on predetermined rules. Rebalancing enables the fund to consistently track the mean market functionality even though a number of the original holdings fall from favor. Index funds have beaten the average actively managed fund since their inception.
Liquidating C20 Tokens
Liquidation is essential to what makes CRYPTO20 groundbreaking: it protects the token price and guarantees it will never be able to fall beneath the token's share of the publicly audited inherent assets. These tokens will be resold on exchanges so that the general fund value doesn't decrease over time.
From CRYPTO20 Founder and CEO Daniel Schwartzkopff:
“CRYPTO20 eliminates all the third parties involved in taking ‘cuts' of investor returns by going direct to the end-user as a token itself. No platform charges, no broker fees, no advice fees.
CRYPTO20 has completed development and will utilize 98% of the ICO proceeds to get the inherent crypto-assets. C20 is going to be listed on popular exchanges for trading post-ICO. Tokens won't be sold past the ICO since it is a closed-cap fund.”
CRYPTO20 is part of an emerging trend of index funds for virtual currencies that have been launched over the last several years. The CRYPTO20 token C20 may help reduce the risks that investors fast with its highly liquid nature and could inspire confidence in investors to invest more funds.