CRYPTO20 – An Autonomous, Tokenized, Crypto Index Fund
CRYPTO20 is an autonomous crypto-only index fund that tracks the top 20 cryptocurrencies in the same way the S&P 500 tracks the top 500 US company stocks. C20 is the fund’s token and represents an investor’s share in the fund.
[Note: This is a press release.]
Token-holders are able to liquidate the C20 token for their share of the underlying assets via the smart contract. By going directly to the end-user as a cryptocurrency itself, CRYPTO20 gives investors the ability to sell or exchange their tokens at will with no exit fees, no platform fees, and no broker fees. The fund is fully AML/KYC compliant and operates as a registered LLC in the Cayman Islands, a popular fund jurisdiction.
A Diverse, Rebalanced Crypto Portfolio in a Single Token
One is now able to invest in the top 20 cryptocurrencies by holding a single token. The top 20 changes over time, and so will CRYPTO20’s holdings — this weekly rebalancing process mitigates risk and volatility. The underlying assets are passively managed, with an index strategy, and there are no expensive legacy banking costs. The annual fee is only 0.5% per annum – 6x lower than the competitor’s average of 3%.
Simply, an index fund allows investors to track the market index — the underlying trend behind the selection of assets without being reliant on a particular one. There is no active trading apart from the occasional rebalancing of assets based on predetermined rules. Rebalancing allows the fund to consistently track the mean market performance even if some of the original holdings fall out of favor. Index funds have beaten the average actively managed fund since their inception.
Directly Tied to the Underlying Assets Via the Smart Contract
Liquidation is fundamental to what makes CRYPTO20 groundbreaking: it protects the token price and ensures it is never able to fall below the token’s share of the publicly audited underlying assets. These tokens will be resold on exchanges so that the overall fund value does not decrease over time.
According to CRYPTO20 Founder and CEO Daniel Schwartzkopff:
Cryptocurrencies afford us an opportunity to create the world anew. So why are we installing middlemen and building bloated platforms? 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 fees, no broker fees, no advice fees.
CRYPTO20 has completed development and will utilize 98% of the ICO proceeds to buy the underlying crypto-assets. C20 will be listed on popular exchanges for trading post-ICO. Tokens will not be sold beyond the ICO as it is a closed-cap fund.
Please visit https://www.crypto20.com for more information.
The token pre-sale will be held on October 7th.
Images courtesy of CRYPTO20, AdobeStock