Token Factory is a financial products platform catered to the blockchain industry. The platform’s first product, CryptX, consists of a portfolio of 40+ cryptocurrencies. Here’s our Token Factory review.
What is Token Factory?
Token Factory is one of several initiatives launched by 2030, a Switzerland-based blockchain technology accelerator/startup with offices around the world. The Token Factory platform is designed to sell financial products and other token-based products.
The platform’s first product is a cryptographic index token called CryptX. That token represents a portfolio of 40+ cryptocurrencies. You purchase the CryptX token, then access the cryptocurrency market similar to how you would access it with a traditional ETF. It’s a fund that provides exposure to cryptocurrencies without the volatility of holding onto individual currencies.
Interestingly, CryptX is also being marketed towards journalists. You know how the Dow Jones and S&P 500 are used to measure the overall health of the US stock markets? The makers of CryptX see their index as “the new, smart benchmark for the cryptocurrency industry”. Journalists could cite CryptX as evidence that the market is moving in a particular direction.
How Does the CryptX Index Work?
CryptX consists of a portfolio of the top 50 cryptocurrencies in one easy-to-buy token. It’s both an index and a token rolled into one.
You know how you can buy ETFs that track the performance of the S&P 500 or other stock indices? CryptX sees itself in a similar way. You can purchase CryptX to gain exposure to the cryptocurrency market as a whole. You’re still investing in a volatile marketplace, but you’re exposing yourself to less risk than if you invested in one particular cryptocurrency or token.
Ultimately, CryptX represents a basket of large-cap and mid-cap cryptocurrencies. It represents the assets class of large-cap and mid-cap cryptocurrencies as a whole.
The product is catered to cryptocurrency investors who want to trade some of their BTC for CryptX to diversify their portfolio. It’s also catered to new investors who have heard about the exciting gains in the cryptocurrency world and want to gain access to the market, but also want to be financially responsible and spread out their exposure to risk. Finally, CryptX is also catered towards journalists who want a single, useful way to measure the health of the cryptocurrency industry as a whole from one convenient index.
Which Coins Are Held in the CryptX Fund?
CryptX will publish its NAV daily, allowing investors to see the value of their tokens and the individual breakdown of each cryptocurrency. Each CryptX token will represent a fairly even (though not flat) distribution of the world’s most popular cryptocurrencies.
CryptX’s index is designed to meet certain requirements. No coin will have more than 8% of the portfolio, for example. The median coin will have a share of less than 2%. The weighting scheme is designed to provide stability while still gaining access to some of the fastest-growing parts of the cryptocurrency world.
Below, you’ll find a list of the coins that are expected to be part of CryptX when the tokens go live. Not all of the coins listed below will be part of the index, and coins will be added or removed over time to adjust changing market conditions:
- Ethereum Classic
- Stellar Lumens
- First Blood
- I/O Coin
- Agoras Tokens
About Token Factory
Token Factory is a division of 2030, a Switzerland-based company that is building a broad portfolio of blockchain-based products. You can learn more about the organization at 2030.io.
CryptX is just the first product being developed for Token Factory. The full goal for the project is much bigger: The platform will make it easy for companies to issue standard token contracts on Ethereum, while also making it easy for investors to interact with standard token contracts.
You can access an alpha version of Token Factory toady by visiting https://tokenfactory.surge.sh/#/. You’ll need to download the MetaMask plugin or activate uPort to get started.
When Will CryptX Launch?
2030 and Token Factory have not announced any firm release date for the CryptX token at this point in time. Here’s what the official website has to say about the release date for CryptX:
“We plan a special offering when we launch our token, and we have much more coming. We want people to learn how to apply good portfolio design to blockchain-based tokens. Sign up for our mailing list. We’ll notify you of our progress, products, and thoughts on cryptoinvesting.”
Obviously, both Token Factory and CryptX are still in the early stages of development. You can sign up for the mailing list at TokenFactory.io
Token Factory and its flagship product, the CryptX token/index, are unique concepts that could revolutionize the way companies raise capital through the blockchain. Token Factory makes it easy to issue token sales on Ethereum – and participate in token sales.
CryptX, on the other hand, is a token designed to track the cryptocurrency industry by investing in 50+ different large-cap and mid-cap tokens. No coin has more than an 8% share, and the median share is about 2%. CryptX can be used by investors to diversify their portfolio – similar to an ETF – or by journalists who wish to track the overall health of the cryptocurrency industry – similar to how the Dow Jones and S&P 500 work.
We don’t have any information about when CryptX will be released. However, the Token Factory platform is currently available in alpha form through the TokenFactory.io official website.