With the value of Bitcoin skyrocketing, it’s no surprise that cryptocurrency investment has dramatically surged in popularity over the last few months. Investing in cryptocurrency, however, can be a complex and confusing task. With so many different tokens, altcoins, initial coin offerings, and exchanges, developing a winning trading and investing strategy can be time consuming and confusing.
Many newer cryptocurrency investors find that the crypto investing ecosystem lacks financial services or companies that assist them in the investing process. In the traditional stock market, there are many different organizations that assist investors in identifying rewarding, legitimate, and promising projects. Spending countless hours reading white papers and information isn’t possible for many time poor investors.
A new blockchain based platform, however, is aiming to change this by providing newer investors with an opportunity to enter the crypto market in a simple and seamless manner. ICONOMI aims to index a broad spectrum of different cryptocurrency investment funds that are managed by expert traders and investors.
The ICONOMI platform wants to channel investor funds into a range of promising projects in the cryptocurrency ecosystem. Ultimately, ICONOMI wants to function as a platform for investors that are seeking to maximize their profits and benefit from exposure to the most promising and innovative blockchain based projects.
In this article, we’ll take a look at the ICONOMI platform and find out what it offers to help you determine whether it’s worth getting on board with.
What Is ICONOMI?
Most investors are aware of the benefits that index investing can offer. Investing in index funds spreads risk across a wide range of different securities or assets, and delivers a number of other advantages over investing in a single asset. Offering users a low cost point, index funds maximize consistency, which is essential to long term wealth creation.
ICONOMI makes it possible for users to select from a broad spectrum of different index funds, streamlining the investment process and allowing them to access the ever growing crypto market without expending a significant amount of time and effort on research.
The ICONOMI platform was founded by CEO Tim M. Zagar and CTO Jani Valjavec in Slovenia in 2016, and incorporates a decentralized management platform that allows funds of tokens to be managed for digital asset investment. Fund managers are provided with fees that are paid through the ICONOMI platform, and receive payment for both fund creation and fund management.
The ICONOMI Team have spoken on the purpose of the platform, describing their aims:
“we have been building a different kind of company that connects people around the world through the latest disruptive ideas and provides them with a unique set of tools to take an active part in the distributed economy. ICONOMI’s mission is to give everyone the chance to enter the world of digital assets and make the new economy more open and connected.”
What Are Digital Asset Arrays?
One of the core concepts of the ICONOMI platform is the idea of Digital Asset Arrays. These arrays include a variety of different digital assets, and offer four separate asset generations. The first generation of digital assets offered by ICONOMI are strictly focused on Bitcoin, while second generation assets focus on Altcoins.
Third generation digital assets are primarily concerned with applications tokens, while fourth generation assets work with DAAs. Digital Asset Arrays can combine any of the previous assets, and can incorporate a spectrum of different cryptos such as Qtum, Waves, Ether, Bitcoin, and more.
Fund managers using the ICONOMI platform are able to create their own arrays, and are able to offer them directly to investors. According to ICONOMI, Digital Asset Arrays can be fine-tuned to maximize fund stability, or tuned toward a more aggressive strategy in order to maximize profits.
How ICONOMI Works
The ICONOMI platform is designed to allow DAA managers and investors to connect directly with each other, working together on optimizing profits generated from the digital asset investment market. Digital Asset Array managers are able to test and improve their investment strategies, and then share their ideas with the ICONOMI community.
Investors are able to browse through a library of different Digital Asset Arrrays and invest in the options that they find most promising, sorted via a wide range of performance indicators. If a specific Digital Asset Array is performing particularly well, the ICONOMI platform boosts its visibility, thereby attracting more investors.
The ICONOMI platform offers a high degree of security, with digital assets that are managed by the platform secured in multi-signature cold wallets. Using the ICONOMI platform to invest in digital assets lowers the overall risk of depreciation, as well as creating index funds with an optimal digital asset mix.
The entire ICONOMI platform runs on ICN tokens, which are issued to users. Based on the Ethereum network, ICONOMI ICN token holders are issued with dividends, and are able to vote on issues regarding the platform. At the time of this report, the ICN token currently has a market cap value of a little over $147 million USD
Overall, the ICONOMI platform has become a tremendously successful force in the cryptocurrency market, but does raise a number of concerns, as the entire source code of the project is closed source and not available for public auditing.
Despite the closed source nature of the ICONOMI project, it’s experiencing a significant amount of growth. If you’re seeking a comprehensive list of some of the best-performing index funds in the market, ICONOMI is a good option.