Crypto funds act as a “basket” of different digital assets and can offer a variety of benefits over purchasing individual coins, such as ease of management and the relative safety that comes with diversification. Fortunately, creating and maintaining your own fund just became a lot easier, the platform notes.
The team behind the Iconomi platform says it wants to offer a way for all users — regular and advanced — to easily get involved in cryptocurrency funds, without the complications that often come with traditional offerings like exchange-traded funds (ETFs), which can find customers navigating obscure terms and putting up with minimum buy-ins.
The solution the company found has been to enable customers to create and manage their own personal index, with exposure to 70+ coins, the ability to use algorithms “to maximize returns,” and the option to rebalance the fund in “a few clicks.”
The reason that some users look to actively or passively managed funds, as opposed to just individual coins, is that diversity comes with a variety of benefits. For one, clients don’t have to pick and choose which projects they support one at a time, but instead can create a portfolio that intelligently channels their money into predefined currencies. Another boon is that diversity offers some protection against the volatility of the market, which is a well-known risk in crypto.
Iconomi has come in to offer users control over their own fund, whereas usually one would have to seek out such a product from an institution, often putting up with limitations such as lack of control over how the money is managed. With Iconomi’s system, anyone can retain all the power and set up not only their own basket of projects to support but also define their own strategies for rebalancing their index.
Some individuals may not want complete control over their own fund, and in that case, Iconomi has plenty of hands-off options. By offering an array of baskets that are actively managed by Iconomi experts, users can have the confidence of following someone who already has their own strategy and can rebalance the fund without any work on the part of the user.
In a recent interview with CriptoNoticias, Iconomi’s co-founder and CEO, Tim M. Zagar, discussed the benefits of working with the company’s experts and how they can aid beginners who aren’t sure what exposure they want. According to Zagar, “Iconomi experts choose the cryptocurrencies and manage the funds depending on market conditions, while investors can sit back and track their investments anytime and anywhere.”
If a user wants to manage everything themselves instead, Iconomi will enable him or her to set up a new fund, to choose which coins he or she wants to include, and to perform his or her first buy-in — all in a matter of minutes. If a customer is feeling particularly confident in their strategy, they are able to invite others to partake in their index, and even define their own management fee of up to 10%.
A platform with regulatory backing
Something that may put many users’ minds at ease is knowing that Iconomi, based in the United Kingdom, recently had its governance prospectus approved by the Financial Market Authority (FMA) of Liechtenstein, meaning that the company now has a well-defined legal framework for operation. This has led to the creation of a parent company for all the offered services, Iconomi AG, as well as the issuance of a security offering, titled Profit Participation Securities.
Iconomi says it has been working hard to ensure that it is operating within clear and transparent guidelines so that its clients can trust the integrity and future of the platform. Furthermore, the team has made sure that any user can not only review its prospectus themselves online but also access the history of the company’s financial reports.
For accessibility reasons, the current platform only offers deposits in the form of Bitcoin (BTC), Ether (ETH) and euros. This comes down to the fact that BTC and ETH are the cryptocurrencies with the highest liquidity and Europe is currently where the majority of the user base comes from. However, Zagar has maintained that, “In the future, we are looking to add other currencies as well.”