As cryptocurrencies such as bitcoin gain mainstream adoption, we can only expect to see more fintech infrastructure built around the cryptocurrency financial systems to match the level of development seen in traditional finance:
As a prime example of that, CRYPTO20has launched a platform that enables investors to buy into a tokenized cryptocurrency portfolio that autonomously holds the top 20 cryptocurrencies determined by market cap with weekly rebalancing. The C20 fund hyperparameters were determined through extensive modelling and the application of efficient and effective data science processes in a tried and tested manner, and is clearly laid out in their whitepaper. The intention is to further streamline the onboarding of mainstream demographics who would have been otherwise overwhelmed by the level of complexity and detail involved in emergent crypto markets.
Here is all about Crypto20.
What makes it better than others?
What are the additional features?
How it is helping the investors?
And many more.I hope you will like post.
In the 21st century the Cryptocurrencies have grown exponentially since their creation
in 2009, with the total cryptocurrency market capitalization currently standing at over $150 billion.
While growth has been strong, the market capitilization of cryptocurrencies as a whole is still only a fraction of that of the S&P 500 index - which is itself only a fraction of the global stock investment market.
There is still room for considerable growth.
As there are thousands of cryptocurrencies to choose from,with more appearing each day.
choice adds cost, complexity and the need for advice. High risk, extreme volatility and practical difficulty compound to render buying and safely storing an effective and diverse portfolio of coins(cryptocurrencies) a complex problem.
CRYPTO20 is the worlds first cryptocurrency-only tokenized index fund, and aims to provide a solution to this problem.
The portfolio will autonomously maintain a diverse portfolio of the top 20 cryptocurrencies by market capitalization in the same way that funds such as the Vanguard 500 maintain a portfolio based on the
market capitilization of the top 500 publicly listed US companies
(the S&P 500).
In order to continue to track the market (index)
over time, CRYPTO20’S asset portfolio is adjusted regularly in a process called rebalancing.
CRYPTO20 is not a platform, it is a fully functioning product.
CRYPTO20 cuts out the middleman and is thus able to offer the lowest fees in the industry.
So following were the main reasons for the introduction of Crypto20.It has been introduced to help the investors.
CRYPTO20 is an autonomous, tokenized crypto-only index fund. It tracks the top 20 cryptocurrencies in the same way the S&P500 tracks the top 500 US stocks.
It is a complete product and the ICO proceeds go towards buying the underlying assets and not to pay for the development of a platform.
Each token represents an investor’s share of the underlying assets. The tokens are directly connected to the value of the underlying assets via the smart contract.
Owning a diverse, rebalanced cryptocurrency portfolio is now as easy as holding a single token.
The coin should be in the top 20 cryptocurrencies by market capitalization and not be created with the intention of supporting or facilitating any illegal activities.
To determine fund hyperparameters (number of coins in the index, rebalancing methodology and maximum component cap) we ran backtests over 100 6-month rolling windows to produce results that are relatively time-invariant. We also investigated only discrete values (e.g. 10,15,20,25,30 coins) so as to prevent overfitting;
e.g. in a backtest it may have been revealed that 17 coins was a true optimum for that particular dataset but care was taken to allow for good generalization to future data. The full result of our hyperparameter optimization backtests are available in section VII of our white paper.
CRYPTO20 is currently a finished product and asset acquisition will occur as soon as our audit partners have completed the post-ICO audit. The report will be made public and trading will commence before 15 January 2018.
C20 tokens will be listed for trade on the exchanges in January 2018.
For more information please visit: https://crypto20.com/en/
1 C20 token will represent 1 share of the total fund assets (out of 86 206 896 total tokens).
The tokens can be sold on a secondary market (exchange) or liquidated via the smart contract for the market rate of the underlying assets in ETH. 98% of the ICO funding will go directly towards purchasing the underlying assets.
Each coin has a maximum component cap weighting of 10%; various component weightings were investigated. A 10% cap is more profitable more often and it offers a decreased risk profile when compared to a fund without a cap where a single coin may entirely dominate the weighting.
