The First Tokenized Cryptocurrency Index Fund

Owning a diverse crypto-portfolio is now as easy as holding a single token - for anyone

Fact Sheet White Paper

ICO OPEN

A new investment paradigm

Autonomous 'token-as-a-fund'.

A crypto index fund that will use the ICO funding to buy the underlying crypto assets. No broker fees, no exit fees, no minimum investment and full control over your assets. Full blockchain transparency.

Index Fund Performance

CRYPTO20 provides a way to track the performance of the crypto markets as a whole by holding a single crypto asset. Index funds have consistently beaten the average managed fund since their inception.

Learn more
Ease & Simplicity

There are literally thousands of cryptocurrencies for investors to choose from. Choice paralyzes. Choice adds cost, complexity and the need for advice. CRYPTO20 eliminates this complexity for the new crypto investor.

Get in first

”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.”

— Daniel Schwartzkopff, Founder & CEO, CRYPTO20


IN THE NEWS

Interviews with Daniel Schwartzkopff

ICOAlert PODCAST (45 minutes)
Boxmining PODCAST (25 minutes)
How it works

We take what works from the old-world financial system and remove what doesn't.

1 // INVESTOR OPTION TO LIQUIDATE TOKENS
2
3  function withdraw() external {
4      address investor = msg.sender;
5      uint256 tokens = withdrawals[investor].tokens;
6      require(tokens > 0);
7      uint256 requestTime = withdrawals[investor].time;
8      Price price = prices[requestTime];
9      require(price.numerator > 0);
10     uint256 withdrawValue = safeMul(tokens, price.denominator)
                                      / price.numerator;
11     withdrawals[investor].tokens = 0;
12     if (this.balance >= withdrawValue)
13         enact_withdrawal_greater_equal(investor, withdrawValue, tokens);
14     else
15         enact_withdrawal_less(investor, withdrawValue, tokens);
16  }
17
18  function enact_withdrawal_greater_equal(
19      address investor,
20      uint256 withdrawValue,
21      uint256 tokens
22  )
23      private
24  {
25      assert(this.balance >= withdrawValue);
26      balances[fundWallet] = safeAdd(balances[fundWallet], tokens);
27      investor.transfer(withdrawValue);
28      Withdraw(investor, tokens, withdrawValue);
29  }
30  function enact_withdrawal_less(
31      address investor,
32      uint256 withdrawValue,
33      uint256 tokens
34  )
35      private
36  {
37      assert(this.balance < withdrawValue);
38      balances[investor] = safeAdd(balances[investor], tokens);
39      Withdraw(investor, tokens, 0);
40  }
41

        
Safe ERC20-Compliant Smart Contract

CRYPTO20 makes it easy for anyone to get exposure to crypto returns with broad, diversified risk.

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.

The entire combined crypto market cap is only 0.5% of the S&P 500 cap. The fund will be heavily promoted to fiat investors and the only opportunity to purchase these fund tokens will be from you - the ICO token holder.

”Don’t look for the needle in the haystack.
Just buy the haystack!”

— John C. Bogle, founder of The Vanguard Group and inventor of the index fund.

Performance of CRYPTO20 hybrid index fund vs the CRIX market-value-weighted crypto index

Earnings from $10 000 initial investment over past year

past performance isn't necessarily indicative of future performance.

The CRIX (CRyptocurrency IndeX) is a benchmark designed for the crypto market developed as a joint work by the University of Humboldt and Singapore Management University with data provided by CoinGecko. The CRIX has been rescaled to begin at $10,000 and compared to the C20 fund for the same time period. CRIX utilises a market-share-weighted system with 65 different coins considered - more information may be found on their website.

Historical Return Comparison

Select an investment amount and date to see returns ending 15 August 2017.

Initial Investment: $1

Purchase Date: 1 Jun 2016

CoinValue%
C20 IconC20$31.773077%
BTC$7.82682%
Meet the team behind CRYPTO20

Team

Advisors

Partners

Token Issuance & ICO Structure


ICO Fund Utilization: 98% Underlying Assets, 2% Operational Expenses

Token Type: ERC20, Ethereum Blockchain

Maximum Supply (Hard Cap): 86,206,896

Available for Purchase: 75,000,000

Price per token:

Pre-sale: $0.95 (first 7,500,000 tokens)

First 48 hours of ICO: $1.00

48 hours to week 4 of ICO: $1.05

Week 4-6 of ICO: $1.10

Emission rate: No new coins will be minted, created or mined after the ICO

Main ICO Sale Period: 16th October 2017 18h00 GMT to 30th November 2017 00h00 GMT

Team tokens will vest over two years via a smart contract 'vault'
to align team incentives with ICO participants.

Frequently Asked Questions

Is CRYPTO20 a platform?

No - CRYPTO20 is not a platform. It is an autonomous, high-performance, low-cost cryptocurrency index fund. Development of the trading system is complete - CRYPTO20 offers value now, not at some point in the future. Diversification to the top 20 cryptocurrencies is now possible by holding a single token.

How can I invest in CRYPTO20?

Please refer to our guide: How to invest.

After the ICO, you will need to purchase C20 tokens on an exchange to participate.

Where is CRYPTO20 incorporated?

CRYPTO20 has been established in the Cayman Islands jurisdiction. The Caymans are a popular international jurisdiction for the incorporation of investment funds.

The Cayman jurisdiction has seen a strong increase in private equity funds year on year over the past decade. The popularity of Cayman private equity funds has been fuelled by the increase in hedge fund managers growing into the private equity space and by the increased use of private equity funds to pursue distressed asset investments.

The Cayman limited liability company (LLC) was introduced last year as a flexible, tax-neutral low-cost fund vehicle with a corporate personality.

The LLC is a flexible structure ideally suited for use as a closed-end investment vehicle. In particular, one which seeks investment during a capital raising period (in our case, the ICO) and draws down periodically in order to fund investment opportunities and operating costs when they arise. The Cayman LLC was established under legislation that was drafted with the key terms of private equity vehicles in mind.

The registration, due diligence and reporting requirements which arise from this legislation is generally delegated to a private equity fund’s administrator. The procedures are closely aligned with existing anti-money laundering (AML/KYC) requirements to ensure that the use of Cayman vehicles for private equity structures remains a low cost option.

Please see this Deloitte report for more.

What are CRYPTO20's public reporting requirements?

How do I buy ether (ETH) or bitcoin (BTC)?

Please see our recommended guide: How to Buy Bitcoin.

Will any more tokens be issued after the ICO?

There will be no token creation, minting or mining after the ICO period.

What is the motivation for a closed-cap fund / issuing no further tokens?

When a fund has stellar performance, it attracts substantial amounts of new money. A manager will most likely have to use that new money to "chase" a relatively small group of coins. This buying pressure can drive up coin prices, forcing the fund manager to pay higher prices than would otherwise be the case – affecting all tokenholders by reducing the fund’s future gains. This is our motivation for a closed-cap fund.

The fund will be heavily promoted to retail investors and the only opportunity to purchase these fund tokens will be from you - the ICO participant.

What is an index fund?

Please see our learn page to discover more about index funds and crypto investment.

How does the liquidation option work?

The built-in smart contract liquidation function enables investors to withdraw ether based on their share of the fund's underlying assets. This process is entirely autonomous and withdrawals do not require authorisation or extended waiting periods (as is often the case with other investments).

Investors submit a withdraw request to the smart contract which then enables them to withdraw the ether amount corresponding to their tokens' net-asset value (less a 1% trading fee). The realised withdrawal price is based on a forward pricing policy. This means that the ether withdrawal amount will be calculated based on the next published NAV price.

When will the ICO take place?

From 16 October 2017 to 30th November 2017.

How will the ICO funds be spent?

2% of funds will be reserved for operational expenses. 98% of the funds will go towards buying the underlying assets.

How will the tokens be distributed?

87% of the tokens will be issued to ICO participants.

7.5% of the tokens will be reserved for the team to fund future development and ensure the security and perpetuity of the fund. Team tokens will vest over a 2 year period. 2.5% of the tokens will be reserved for marketing and PR to promote the fund to fiat investors. 1% of tokens will be allocated to ongoing security efforts. 1% of tokens will be reserved for legal fees to ensure CRYPTO20 remains compliant with legislation. 0.5% of the tokens will be reserved for the advisory team. 0.5% of the tokens will be reserved for the bounty campaign.

What are the fund costs?

Fund automation will allow us to operate in a sustainable low-cost skeleton fund capacity and offer management fees of only 0.5% p/a as opposed to the 3% p/a plus 0.5% exit fees offered in the crypto market at the moment.

Why is CRYPTO20 on the blockchain?

There are many reasons to utilize blockchain technology for CRYPTO20:

  • Full transparency over fund activity
  • Ability to trade or move tokens at will with no exit fee
  • No minimum investment
  • No legacy banking costs means low fund fees
  • Easy listing for sale and trading peer-to-peer on exchange
  • CRYPTO20 only holds cryptocurrency assets

Are you launching your own blockchain?

No. CRYPTO20 will be an Ethereum-based token.

Will C20 be tradable?

Yes, expect C20 to be listed on several major exchanges.

Why can’t I send my C20 tokens to another account?

C20 tokens can be sent to other accounts once all underlying assets have been acquired (latest 14 January 2018). Until that point, they are frozen in the account that was specified when investing through our smart contract.

This ensures that tokens are only tradeable on exchanges post-ICO and post asset acquisition which protects the token price while they are still being issued and while assets are still being acquired.

Can I make multiple deposits to the ICO? For instance, deposit 1 ETH today and then another 1 ETH next week?

Yes, as long as the ICO is still ongoing. There is no limit to the amount a single investor can invest. You are also free to use as many different accounts or payment methods as you desire.

Why not buy the underlying assets myself and run my own index fund?

There are many reasons:

  • Convenience - buy and forget
  • Large funds get volume based discounts on exchanges
  • You only have to hold a single asset instead of 10+
  • Rebalancing a portfolio is a complex and time-consuming process
  • C20 token value can exceed value of underlying assets but can not fall below due to the liquidation option in the smart contract
  • C20 tokens are designed to be attractive to fiat investors seeking a straightforward way to gain exposure to cryptocurrencies and token sales will be limited during the ICO

What will happen if one of the tokens that CRYPTO20 holds undergoes a fork - such as Ethereum or Bitcoin has?

We will integrate the additional tokens into the CRYPTO20 fund as soon as we are able and then follow normal rebalancing procedure (and as such this token may or may not then form part of our fund composition). It is likely that the value of the fund will increase and this will be passed on to C20 token-holders.

I’ve seen x or y fund manager or trading bot guarantee to beat the market. Why not trade actively?

Active traders and fund managers generally have a far higher fund expense ratio than index funds - around 3% p/a as opposed to index funds which offer closer to 0.5% p/a. The effect of this is that the aggregate return of investors is less than zero sum which makes outperformance compared to an index fund and to the market much less likely.

Over a 10-year investment horizon more than 80% of large-cap fund managers failed to outperform their benchmark index. The odds of picking a winning fund manager are also low: studies show that irrespective of past performance, future performance is virtually random.

Be wary of salesmen, brokers and fund-managers that offer surefire strategies or trading bots that they promise will consistently beat the market.

I've noticed that CRYPTO20's position is that AI crypto-funds will be ineffective due to the complexity of the market and lack of data - is not then a contradiction that you will co-operate with your partner Dataprophet to attempt to implement something similar?

No, there are 2 primary reasons why this is not the case:

  • What others are attempting to do and what we are suggesting is entirely different in scope and difficulty. CRYPTO20 only plans to use machine learning to optimise the technical aspects of its fund operation and carefully determine hyperparameters for future funds. This is far more feasible than attempting to use AI to develop and operate an entire trading strategy.
  • We will only start implementing these optimisations after 6 months have passed and we are able to gather and curate a sufficiently rich dataset. Altcoins - propped up by ERC20 tokens and ICOs - have only recently become major market players. This creates further difficulty for AI funds launching in the near future as data from the era of Bitcoin dominance is no longer strongly relevant.

What is the advantage of participating in the ICO rather than just waiting until launch?

CRYPTO20 is a closed-cap fund. You could wait until exchange listing but then you are buying directly from other investors; why would they sell to you at a loss? If it was a regular ETF then you could possibly expect the fund to trade closer to the NAV price but since we are not selling any tokens directly the price is largely dictated by the market; but with the safety net of the NAV liquidation option providing a solid price floor. In addition, the 7.5% team allocation is vesting over two years; those tokens will not be in circulation.

Niche tech CEFs (in this case crypto) often trade at large premiums. Healthcare CEFs on the NASDAQ have traded at 50% premium to their NAV per share, for example.

As an added bonus, we will be offering various trading tools to ICO participants and first access to future funds with optimized hyperparameters built off the vast wealth of trading, order book, volume and price data generated by CRYPTO20 operation.

See our portal for a taste of what is to come!