What Is CyCoin?
Cycoin is a platform that seeks to manage a basket of crypto assets and currencies on behalf of users—so they don’t have to. The project’s aim is to establish new and established investor access to the cryptocurrency investment markets with a dependable and easy mechanism.
This will enable it to hold a pool of digital assets to bring an income stream without the struggle of scouring through hours of research and manual investing. This is possible through the implementation of tried and observably low-risk investment strategies to deliver income reward to Cycoin holders.
The crypto space is expanding and new coins emerge nearly every day. This makes it difficult and time-consuming for users to determine which digital assets can offer the real deal and which ones cannot. Besides, once a user decides on this, several cryptocurrencies with merit still have to face huge tasks of becoming a working reality.
It’s often risky stuff with many coins promising potential future income that try and eventually fail to deliver. Cycoin, on the other hand, offers solid, understandable, and real income deriving investment strategies. The platform conducts its strategies through established mechanisms that are already evident on the crypto markets. The funds raised will be reinvested into cryptocurrencies such that no money will travel anywhere apart from those established in the funds criteria system.
How Cycoin Cryptocurrency Investing Basket Manager Works
Cycoin is an asset-backed cryptocurrency. As such, it’s backed by the coins users purchase as they conduct Cycoin’s investment objectives. Cycoin holders get the voting power over the pool of cryptocurrencies. They hold selected currencies that are established and real to conduct margin lending activities and take advantage of arbitrage opportunities that arise periodically in the crypto markets. The selected coins are usually among the top 100 by market cap.
Cycoin Core Strategies
For the first month, the platform initially utilizes 100 percent of the fund (of course minus the development reserve mentioned above). Thereafter, a minimum of 50% and up to 80 percent of the fund is converted to digital currencies and placed on various exchanges for lending traders on those exchanges and eventually earn margin lending interest. The interest on margin lending varies based on the currency and according to supply and demand disparity.
The platform will dedicate up to 30 percent of the funds to arbitrage profit. Since cryptocurrency exchanges are not interlinked, one asset might have different prices on various exchanges. Cycoin seeks to assess the differences and if possible, take the initiative of buying the asset at a lower price on one exchange and selling higher on another exchange.
Pre-ICO And ICO Investments
Cycoin will invest up to 50% of funds in pre-ICO and ICO opportunities. The platform will employ a range of external professional services to deliver up pre-vetted and curated opportunities.
Fund Income Reinvestment
Cycoin will retain 10% of the funds generated from pre-ICO and ICO investments for distribution and reinvestment together with the general fund. This will increase the amount of cryptocurrencies held.