ICONOMI’s New Financial Instruments for the Decentralized Economy
Investors unfamiliar with cryptocurrencies may be hard pressed to select ones to build a portfolio with. At first, there was bitcoin and litecoin, analogous to gold and silver, but bitcoin’s dominance has been challenged recently by the rise of cryptocurrencies such as ether, steem, dash and ripple.
New blockchain projects and platforms are being introduced at an increasing rate and it is estimated that by the end of 2017, there will be over 1000 projects and companies competing with existing internet businesses.
With such an intensification in the influx of information, even seasoned crypto investors will find it difficult to establish the right investments in the early stages. However, more projects provides more opportunities. Instead of a multitude of Initial Coin Offerings (ICO’s) that may be difficult for those outside of the community to break down and evaluate, ICONOMI will introduce new financial instruments in hopes of attracting fresh capital to the decentralized economy.
Instead of a multitude of Initial Coin Offerings (ICO’s) that may be difficult for those outside of the community to break down and evaluate, ICONOMI will introduce new financial instruments in hopes of attracting fresh capital to the decentralized economy.
With funds proving a way to lower risks from volatile instruments, ICONOMI is planning on introducing two investment vehicles, adding to the variety of bitcoin instruments that are already on the market, GBTC for example, and those that are in progress, such as the SolidX and Gemini ETF’s.
Firstly, the ICONOMI.INDEX FUND will pool various thoroughly-researched cryptocurrencies such as Bitcoin, Ethereum, Lisk, Steem as well as other major value tokens and will be traded on major exchanges. Secondly, the ICONOMI.PERFORMANCE FUND is aimed at investors looking for higher returns, managed by a team of experts, seeking ICO’s possessing high prospects. However, this fund is slated to be ‘invite only’.
ICONOMI hopes to fill the gap between the old economy, where investors are desperately searching for yields amidst the faltering bond market, and the new economy, where investment expertise is relatively scarce. It is the first investment fund management platform for the emerging ‘decentralized economy’ and hopes to reduce barriers such as transparency, security and 24/7 access for first-time crypto investors.
Riding a wave of ‘app coins’, ICONOMI is set to launch tokens allowing individuals to own a share of the platform; 100 million tokens will be issued on August 25 and the company estimates that this will help them raise a further $200 million. With ambitious plans for 2017, ICONOMI’s Tim Zagar states in a blog post,
“2017 will be dedicated to our vision. We will launch the ICONOMI Open Fund Management platform with a simple promise to successful traders — anyone can be a professional fund manager;
You bring the crypto-expertise, we take care of everything else”.
ICONOMI looks to be a promising project that will help address the problem of asymmetric information associated with investing in the crypto space and help to develop the sector further by attracting new investors.
The ICONOMI white paper can be found here.