108 Token - Crypto Index
We start buying bitcoin early. One of our advisors from San Francisco sent us an email in 2012 & the rest is history
The Mt Gox hacks caused the
markets to crash. However, we had
spent many hours in understanding the underlying technology
& did not sell any of our BTC
We create a pilot for using
blockchain for closing
private market secondary
Ethereum changes the game by creating Turing complete systems. We participate in Ethereum
Crypto hits mainstream, Prices
rocket to north of $800. Long lost
friends now start reaching out with
views on how and where to buy
Trickle from friends turn into a
Torrent of requests. We decide
to launch a passive index token,
diversified across the top coins
Figure out the backtesting
algos, legal stuff (phew!), and
the technology involved in
launching the token

Why Cryptocurrencies matter

The 108 Index

The 108 index tracks the top 15 cryptocurrencies, on a supply-adjusted basis, and rebalances the constituents on a monthly basis. The 108token is an ERC-20 token that can eventually be traded on centralized and decentralized exchange platforms.

Adjusted market cap = Total circulating supply by the year 2050 * Price of that asset at the time of analysis

Backtesting Of 108 Index

Backtesting for portfolio NAV was carried out for a period of 330 days starting from January 1, 2017 to Nov 26, 2017. The closing prices of the crypto assets were taken from coinmarketcap and the Y2050 supplies were taken from onchainfx for the analysis. In the case of forking of a blockchain, the forked chain was considered as a separate cryptocurrency while selecting the top N coins in our portfolio. Top N coins were selected in the portfolio based on the adjusted market cap (Y2050 market cap).

Rebalancing Frequency

Taking into considerations security risks involved in holding funds on centralized exchanges and cost overheads incurred in moving funds between wallets, a rebalancing frequency of 1 month was unilaterally chosen to provide the benefits of index rebalancing while minimizing the threat of cyber attacks.

Chosen Strategy

Number of coins = Top 15 by supply-adjusted market cap
Cap weight on each constituent = 20%
Frequency of rebalancing = monthly