CRYPTO20 in a Nutshell - Writeup

CRYPTO20 is an autonomous index fund that invests only in cryptocurrencies.

They aim to make it easier for people to invest in crypto by managing everything for them, including what of the many cryptocurrencies to invest in, how to do it, and when to make buy/sell decisions.

How does CRYPTO20 work?

CRYPTO20 is a hybrid market-cap weighted index fund consisting of the top 20 cryptocurrencies by market capitalization.

There will be a weekly rebalancing of the fund. This is intended to mitigate risk and and allows for diversification into the top 20 cryptocurrency assets.

Assets are capped at a maximum weighting of 10% - this prevents any asset from dominating the fund.

CRYPTO20 will introduce the C20 token. The C20 tokens are directly tied to the underlying assets with a unique liquidation option in the smart contract. This protects the asset price and ensures it is never able to fall below the token's share of the underlying assets.

Features of CRYPTO20

24/7 trading. Exchange your C20 tokens at any time. No exit fees - your investment is a token!

Lowest fees. Annual fees of only 0.5% p/a - much lower than the 3% offered in the market.

Autonomous. Index funds do not rely on expensive human managers for active trading.

Powered by Data Science. Fund hyperparameters are carefully determined.

Track the Index. Index funds have consistently beaten actively managed funds over the last 30 years.

Blockchain Transparency. Verify where fund coins are held and track value of underlying assets.

C20 Token ICO

The funds raised from the C20 token ICO are the funds that CRYPTO20 will use towards buying the underlying assets. According to their whitepaper, the breakdown of the money received will be as follows:

1.5% Continued Marketing Pre-Exchange Listing
0.5% Legal Fees and Post-ICO Audit
98% Underlying assets

There will be no token creation, minting or mining after the ICO period. Tokens will be transferable and tradable once the ICO is successfully completed and the underlying assets have been acquired. However, it should be noted that 13% of all tokens will be kept for administrative purposes, with 87% going to ICO participants.