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.
C20 is a utility token that is representative of a portion of the total value of the CRYPTO20 cryptocurrecy index. The initial tokens can only be acquired during the token offering process which is a one off, closed cap offering. The tokens provided will represent a participant’s share of the portfolio. 98% of the total amount contributed during the offering will go directly towards buying the underlying cryptocurrencies. C20 is an ERC20 token based upon the Ethereum blockchain. Operating on the blockchain allows for global accessability, 24/7 trading, transparency, public verification of CRYPTO20’s holdings and no expensive legacy banking fees.
The tokens value is linked directly to the 20 underlying cryptocurrency assets held by CRYPTO20 via the innovative price floor mechanism implemented in our smart contract. The smart contract allows participants to cash out for their share of the underlying assets at any time. This means that C20’s value on exchange will be protected - it will be irrational to sell at a price lower than the tokens share of the underlying assets if a higher price is offered via the smart contract. Token holders are free to sell or exchange their tokens at any time and pay no exit fees, broker fees or advice fees.