Re: 📌 [ANN] 📢 [ICO] 💰 COINVEST 📈 DECENTRALIZED STOCK MARKET FOR CRYPTOCURRENCIES 📊
just discovered this project and read the whitepaper but it's not clear to me whether the index fund I create actually holds the underlying asset (ie you have some exchange integration that buys the underlying asset/coin) or is this more a derivative (where the index fund simply tracks the underlying price of each asset/coin based on some price feed)?
got an answer on their telegram. it's basically a derivative you are creating. say when you create an index fund where you, for eg, have a 25% allocation into btc, eth, ltc, xrp you actually dont own any of the underlying coins when you send COIN to their SC. There is nothing in the backend that actually connects to an exchange, buys and holds those coins. They'll effectively get some price feed from somewhere that will provide pricing for you index fund that can be used to value your portfolio and importantly how much profit or loss you make when you liquidate. You get back the difference in value in COIN. Think CFDs (contracts for difference)
Interesting, your project looks like a fund of cryptocurrencies more than stock market for this one. I still confused after reading the whitepaper.
just discovered this project and read the whitepaper but it's not clear to me whether the index fund I create actually holds the underlying asset (ie you have some exchange integration that buys the underlying asset/coin) or is this more a derivative (where the index fund simply tracks the underlying price of each asset/coin based on some price feed)?
tricass is right on this.
Coinvest is a trading platform (and market maker) where you make virtual investment transactions (like derivatives trading on the stock market) and redeem profit from your trades through a process that is completely decentralized and handled by smart contracts. Our platform is an all-in-one investment platform, wallet, and exchange (future). We aim to be a one-stop solution that enables anyone to easily buy, invest in hundreds of different cryptonized assets, and spend cryptocurrencies using only one wallet and one coin.
To make this more real, lets apply this to a potential real-life scenario. Imagine if you want to invest in 12 different coins. With todays solutions, you would have to:
- Search and find all of the exchanges that support the coins you want
- Go through KYC checks for each exchange
- Place 12 individual trades and incur % fees for each trade
- Worry about having multiple wallets to support multiple protocols
- Manage different private keys
- Sell and convert your assets back to fiat currency before being about to spend them
On Coinvest, you could execute all of the above in one trade, for one fee ($4.99), and only have to manage one wallet. From there, you can spend your COIN directly from your wallet without having to convert it back to fiat (using our built-in debit card support).
Today's solutions in the market are just too complicated. Coinvest is democratizing cryptocurrencies by bringing it to the masses. We want to make this so easy that even Grandma can use it and participate in this new revolution. 🙂