SILO is an algorithm-based index token that lets you own a diverse portfolio with one crypto asset. Find out how it works today in our review.

What Is SILO?

SILO, found online at SILO.network, is a digital asset that lets you own a diversified crypto portfolio with the ease of holding one high performance index token. It’s an algorithm-based index token that promises to offer smart, high performance exposure to crypto while diversifying your risk.

SILO was created with two main goals in mind:

  • Give people the power to retain minimal risk
  • Create an accessible token with blockchain-based transparency

A token sale for SILO tokens (SLO) is underway until March 15, 2018.

How Does SILO Work?

SILO uses crowd wisdom to create its portfolio of tokens. The SILO algorithm analyzes opinions online to create a “smart index”. That index is dynamic. It’s updated every 24 hours “to ensure the portfolio’s equal weight distribution and track market trends,” explains an introductory video for SILO.

In other words, SILO is a cryptocurrency index. Other cryptocurrency indices create a portfolio based on market cap. Some create a portfolio with fixed distribution – say, 40% bitcoin, 20% Ethereum, and the remaining percentages split between alts. SILO envisions a different type of cryptocurrency index: an index based on the perceived public opinion of different cryptocurrencies. SILO chose this method in order to mitigate risk.

You can purchase the entire SILO index of cryptocurrencies by buying a single SILO token. That single token represents the entire basket of SILO cryptocurrencies. The value of a SILO token comes from the value of its underlying assets.

Here’s where things get interesting: SILO actually lets you claim the value of your SILO token at any time. You can liquidate your SILO tokens in exchange for 95% of the portfolio’s value at any time. With certain other index funds, you have to trust that your coin has value. With SILO, you can reclaim that value at any time.

The end result of all of this is an algorithm-based smart index, updated dynamically every 24 hours to reflect market trends.

Which Funds Are Currently Held By SILO?

SILO’s funds currently include all of the following, according to the SILO whitepaper:

  • BTC: 15.95%
  • ETH: 20.66%
  • BCH: 2.73%
  • LTC: 4%
  • NEO: 3.95%
  • EOS: 6.35%
  • MIOTA: 0.92%
  • DASH: 2.69%
  • XMR: 2.61%
  • LISK: 4.02%
  • ETC: 3.19%
  • QTUM: 6.01%
  • BTG: 0.46%
  • ICX: 2.63%
  • ZEC: 4.78%
  • OMG: 1.95%
  • STEEM: 2.68%
  • STRAT: 2.44%
  • REP: 2.09%
  • WAVES: 3.19%
  • WTC: 3.79%
  • HSR: 0.77%

SILO Algorithm-Based Crypto Index Token Trading Network Features

SILO emphasizes all of the following features:

Proprietary Algorithm:

SILO uses an algorithm to identify the best cryptocurrencies on the market according to public value. The algorithm is designed to pick the currencies that have the most public trust. SILO believes this is a more reputable measurement than something like market cap or a fixed weight portfolio.

Smart Diversification:

The portfolio is equally shared between all the index’s cryptocurrencies. Nobody can guarantee which currencies will remain on the index in the future. SILO calls this feature “smart diversification”. Of course, as you can see above, the index does not “equally” hold each cryptocurrency: they hold 21% ETH, for example, and 1.95% OMG. The wording is a little unclear in this section of the SILO whitepaper.

Liquidation Mechanism:

The value of SILO tokens is directly tied to the value of the underlying assets. SILO has a unique liquidation mechanism that allows users to reclaim the value of the index at any time (you can reclaim 95% of the value of each SILO token immediately). This protects the price of the asset “and ensures it is never fall below the token’s share of the underlying assets, [sic]” explains the official website.

Based On Hundreds Of Tests And Backtests:

SILO claims its diversification system has beat the price of bitcoin consistently over time. The website features a “results” graph, although it’s a little unusual: the chart follows the price of bitcoin almost identically. Beginning around February 14, the price of SILO significantly diverged from the price of bitcoin. In mid-February 2018, the price of bitcoin was sitting at around $9,000 to $11,000. However, the price of SILO was reportedly above $14,000 from February 16 to February 28. In any case, SILO claims the accuracy of its algorithm is improving almost daily.

Dashboard:

SILO users can access a dashboard 24/7. That dashboard provides access to your data, activities, and actions.

Blockchain Transparency:

You can view SILO’s assets at any time using a blockchain explorer. The SILO whitepaper doesn’t mention any auditing procedures. However, the whitepaper does mention that “daily updates will be made available” to investors. The company will also make its “best effort” to comply with existing legislation.

Who’s Behind SILO?

SILO’s development began in March 2017. The team began testing the index and refining its algorithms. By November 2017, SILO had incorporated and began a private sale.

SILO, however, does not reveal any team information online. The website and whitepaper do not list a single individual involved with the project, nor do they explain where the company is incorporated.

The only apparent way to contact the company is using an email contact form on SILO.network.

Overall, there’s surprisingly limited information about SILO available online considering the company launched in 2017.

SILO SLO ICO Details

SILO is holding its public token sale for SILO tokens (SLO) from January 15 to March 15, 2018.

The tokens are ERC20 tokens on the Ethereum blockchain. There’s a maximum supply of 85 million SILO tokens, with 78 million tokens available for purchase during the token sale.

The first 8 million tokens were priced at $0.20 during the pre-sale, rising to $0.30 during the first 4 weeks of the ICO. As of February 2018, the value of each token is set at the market price. The market price is currently $0.2067 as of February 27, 2018.

Of the money raised during the token sale, 96% will go towards the underlying assets of the SILO index while 4% will be used to cover operations and fees.

SILO Conclusion

SILO has created a cryptocurrency index that holds a basket of cryptocurrencies. That basket of cryptocurrencies is balanced every 24 hours to reflect public opinion on each cryptocurrency. You can buy that entire basket of cryptocurrencies by purchasing a single SILO token. Each SILO token represents the equivalent value of that basket of cryptocurrencies.

SILO claims its users can liquidate their SILO holdings at any time and gain 95% of the value of the underlying assets.

A token sale for SILO tokens, or SLO, is underway until March 15, 2018. To learn more about the project, visit online at SILO.network.

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