Investing in the cryptocurrency market can be a challenging task for many individuals, as the market is highly volatile and the assets are not easily accessible to the general public. This is where cryptocurrency index tokens come into play, as they offer a way for investors to gain exposure to the crypto market in a more diversified manner. Two popular cryptocurrency index tokens are the Alongside Crypto Market Index (AMKT) and Invictus's Crypto 20 (C20). In this article, we will compare the two index tokens to help investors make an informed decision.
AMKT is a cryptocurrency index token that aims to track the performance of the entire crypto market. It stores funds using secure Coinbase Custody, which allows it to offer a broad array of assets. The index is fully collateralized and redeemable for its underlying assets. AMKT is governed by the AMKT index tokens, and it is tradable, mintable, and composable on-chain.
Invictus's Crypto 20 (C20) is a cryptocurrency index token that aims to offer a diversified exposure to the crypto market. The index is constructed using a proprietary algorithm that selects the top 20 cryptocurrencies by market capitalization, with a rebalancing mechanism that adjusts the weight of each asset based on its performance. C20 is fully collateralized and redeemable for its underlying assets, and it is governed by its own mechanism. Like AMKT, C20 is also tradable, mintable, and composable on-chain.
Differences between AMKT and C20The main difference between AMKT and C20 is their investment strategies. AMKT aims to track the entire crypto market, while C20 focuses on offering a diversified exposure to the top 20 cryptocurrencies by market capitalization. Another difference is the way they store funds. AMKT uses Coinbase Custody, which is a secure storage solution, while C20 uses smart contracts.
- AMKT is structured to track the whole crypto market, making total market exposure accessible. On the other hand, C20 offers a more diversified exposure to the market by selecting the top 20 cryptocurrencies by market capitalization. The rebalancing mechanism adjusts the weight of each asset based on its performance, ensuring that the index remains diversified over time.
- AMKT is avalible to trade freely on-chain, however Crypto 20 is whitelisted. In practice this means that the asset is not composable on-chain.
