Read a16z led the encryption index Alongside the rising star

23-03-07 18:42

Read this article in 10 Minutes

AI summary

View the summary

By Leah Yuan, ForesightNews

Warren Buffet has said that by investing regularly in index funds, a novice investor can beat most investment experts. In the traditional financial world, index funds offer a relatively low-risk way to invest for investors looking for steady, long-term returns. The crypto index circuit emerged in 2017 when InvictusCapital launched one of the first tokenized crypto index funds, using seed money to buy underlying assets. The Crypto Index project Alongside recently secured $11 million in funding led by a16z. Ventures, Franklin Templeton Investments, Village Globa, Not Boring Capital and a number of angel investors also participated in the round. Foresight News takes a quick look at this new star of the crypto index circuit.

What is Alongside

Alongside is a crypto index platform that allows investors to invest in cryptocurrencies via the index. On January 12, 2023 Alongside released its first Index product, Alongside Crypto Market Index ($AMKT), Alongside's flagship index token in the form of ERC-20.

AMKT index tokens charge rates by way of inflation, which is 0.95% per year. After a user purchases AMKT, the corresponding amount of portfolio assets will be hosted 1:1 to Coinbase International. The supply of AMKT index tokens in circulation is determined by the market, and the AMKT DAO determines the issue and destruction of the index tokens by converting the AMKT into a digital currency. At present, the index token supports Coinbase, Metamask, Rainbow, BitGo and other wallets, and has been on Uniswap, SushiSwap and other DEX and Gate.io exchanges online trading.

At the time of publication, the market value of the index token is $2,213,656.94, the net value price is $77.98, 16,164. Holder, circulating supply of 28,163.57.

Historical performance of the AMKT index through March 5

Alongside Team Austin Diamond says the team is working on building a high-level, low-cost index product to make cryptocurrencies accessible to the entire market.

The composition of AMKT's assets

For compliance and security reasons. AMKT only supports A portfolio of 25 crypto assets, consisting of the top 25 digital currencies weighted by free-floating market capitalization, aims to track cryptocurrency market trends.

March 2023 AMKT index composition

Index composition change rule: Rebalance And Reconstitution

In order to ensure the stability of the AMKT index and correctly reflect the development trend of the market, the AMKT DAO will carry out a phased rebalancing and reorganization of the token composition. On the first of each month, the AMKT DAO will Rebalance each token based on the performance of each constituent token. The dominance of digital assets fluctuates wildly from quarter to quarter, so on the first day of December, March, June and September, DAO An index is added and deleted to form a Reconstitution according to the market value of assets.

In addition, in the event of abnormal market movements, the AMKT DAO will hold emergency meetings and immediately restructure to reduce the impact of volatility on the accuracy of the AMKT index. Such rebalancing and restructuring frequency can not only better respond to market changes but also guarantee the market tracking efficiency of the index.

AMKT DAO

AMKT DAO plays an important role in ensuring the accuracy of index tracking. The DAO controls the level of tokens, and its administrative authority includes but is not limited to:

Changes to the DAO protocol

Token offering

Determine who is whitelisted

Determine the index balance and reorganization indicators

Determine changes in the composition of tokens.

Five Characters on AMKT

Principal: A trusted institution or group that is responsible for storing and managing private keys to a variety of portfolio assets.

Merchant: decides the issuance and destruction of tokens and is the liquidity provider of tokens.

User: Holder of index tokens. Users can use index tokens for transfer, trading and other activities.

Methodologist: This role is assumed by the DAO and is responsible for publishing the list of portfolio assets and the percentage of each asset in the smart contract.

Administrator: Decides on changes to token contracts, manages whitelists, and has the authority to suspend/resume token issuance or destruction.

Team background

The project is supported by CEO Austin Diamond was founded with COO Gauthier Le Meur in 2021, with Jun Ho Hong as the head of engineering and Rai Sur as the CTO.

Austin While still in high school, Diamond interned at a global investment bank that managed hundreds of millions of dollars' worth of stock index funds. He joined Omni, a peer-to-peer rental marketplace startup, in 2017 and led the B2B business, helping the company raise more than $40 million. In 2019, he joined venture capital firm The Longevity. Vice president of operations, The Longevity Fund, a venture capital firm focused on aging, has raised more than $1 billion from five ipos. It is worth mentioning that the a16z is also active in the field of anti-aging.

Gauthier Le Meur has interned at several Internet companies, including Amazon. He worked at Google as a partner development manager for nearly two years from 2019, before moving to Enterprise Car Sales in 2021. Alongside his first Web3.0 project, as a co-founder he was also responsible for running the project.

summary

Regarding Alongside's development, Diamond said that in the future Alongside will consider launching index products with either the DeFi or Layer2 concepts.

CoinGecko statistics show that the total market value of the current on-chain index protocol plate is only about $80.19 million, market competitors are few. Compared with traditional index products, on-chain index still has a larger development space in representativeness and stability due to fewer assets under management. But overall, the track's huge potential cannot be ignored due to the ease of choice and considerable long-term benefits.