ICONOMI, a Digital Asset Management Platform for blockchains and cryptocurrencies has updated its set of managing rules for ICNX, which is a passive index-based Digital Asset Array (DAA) which invests in tokens meeting certain eligibility criteria. The tokens currently included represent 70% of the total market capitalization of crypto.
The ICONOMI platform enables users to invest in and manage baskets of various digital assets or as a combined Digital Assets Array (DAA). The first DAA was ICNX.
The platform is currently in beta and gradually users have been invited for testing. Users who applied for the beta testing program were added first, followed by ICO participants based on the amount they contributed, and then everyone else.
Updated eligibility criteria for token inclusion:
- The token’s underlying concept must be based on blockchain technology and seen as viable in the long term by ICONOMI, while being evaluated by the following: Token functionality, Stage and quality of the product being developed, User adoption potential and growth, Capability of the team, Competition
- The token must be released and it must have been trading on Poloniex or Bittrex for at least 1 week (additional exchanges such as Kraken are coming soon)
- The average daily volume of a particular token in the past 7 days on exchanges must be at least double the invested value in the portfolio.
- The invested amount of a particular token shouldn’t exceed 5% of its market capitalization.
- There is no cap on the number of tokens in ICNX.
- The circulating supply of particular token should be at least 60% of total supply, unless tokens not in circulation are issued in new funding campaigns.
- The annual inflation rate of particular token shouldn’t exceed 20%, unless the actual user base growth of token is high.
The ICNX Index structure is based on a nominal value of a particular token’s market capitalization, where additional adjustments are made due to the high concentration of the top few tokens on the market. Index rebalancing is performed at the end of each month, or more frequently if ICONOMI deems it necessary.
- Maximum weight of any token at rebalancing is 15%
- Tokens that have a proportionally higher market cap have their weight based on a logarithm of market cap value*
- ICNX pursues a structure that delivers diversification benefits and minimises risk.
- During rebalancing periods the structure of ICNX may move from the defined criteria temporarily.
- Rebalancing may be triggered during regular rebalancing periods if weight of certain tokens surpass 25% of ICNX.
*Log has to be taken in order to get a more fragmented structure of the index. The log is applied only for those currencies which would otherwise have too large a weight (i.e. Bitcoin and Ethereum having a combined weight of 70%).
The token of ICONOMI (ICN) has risen this month to around $2.00 per USD up 2% in the last 24-hours and to 0.0007 BTC.