By
Steve Muchoki
February 14th, 2024
Obtaining exposure to cryptocurrencies can often seem like a daunting task with a myriad of choices to look at. But in a country like the United Arab Emirates (UAE), rather than limiting one’s choices to one or two projects, the Crypto Price Index is offering an entirely different approach, which can be achieved through its native CPIX token.
The Evolving Cryptocurrency Industry
Onlookers may often scratch their heads when trying to grasp the broader nature of the cryptocurrency industry. There are thousands of projects, hundreds of platforms and service providers, and a growing dictionary of “crypto lingo” to sift through. It can lead to a lot of confusion, especially for those who simply want to invest in this industry without too many headaches.
Lowering the barriers to entry is crucial. At the same time, investors want to remain on top of new and emerging trends. DeFi, or decentralized finance, is currently a hot trend in the industry. Understanding aspects such as “yield farming” or “unwrapped token shares” is a very different ordeal altogether.
The team behind Crypto Price Index proposes a rather elegant solution. Through this token ecosystem, users can gain broad exposure to the cryptocurrency industry as a whole. It does not require any specific knowledge of different projects, which can certainly be appealing to onlookers.
Not Your Average Index
In the financial world, finding indices to gain broad exposure to a specific industry is not difficult. Traditional stock markets provide such overviews for several decades. Examples include the S&P500, the Dow Jones Industrial Average, or the Nikkei 225. In the cryptocurrency world, the concept is relatively novel.
Contrary to what one may think, the Crypto Price Index is not just tracking the top 10 or 20 of crypto assets ranked by market cap. Instead, it is designed to offer token holders a massively diversified range of assets spanning the different segments of the cryptocurrency industry.
Thanks to this unique approach, token holders will always have access to emerging trends and projects. With Bitcoin seemingly on the verge of pushing beyond $10,000 again, diversifying one’s portfolio may prove to be the smart approach.
It is also worth noting that this project has received support from several prominent Emirate families. Their involvement typically comes when projects have sound business plans and their advisory, as is the case with CPI, will bring invaluable financial expertise to the project. For example, sitting on the CPI advisory board is His Highness Sheikh Abdullah Bin Rashed Al Sharqi, from the eminent Al Sharqi Ruling family of Fujairah, one of the Trucial States and currently a member of the United Arab Emirates (UAE).
CPI and CPIX Explained
To engage with the Crypto price Index, interested parties will need to obtain the CPI token. This particular token is a governance token which presents a stake in the overall Crypto price Index ecosystem. Holders of this token can reward or penalize network participants depending on their overall behavior.
Different instances of the CPI tokens will exist. Users can customize the basket of currencies they want to be exposed to. For example, a CPI30 token will expose traders to 30 different cryptocurrencies.
Through ownership of the CPI token, CPIX tokens will be minted. Every CPIX token is backed by component assets maintained in an escrow smart contract. Obtaining CPIX tokens occurs by depositing cryptocurrencies. Redeeming tokens happens in the opposite manner: depositing CPIX to the smart contracts will ensure traders receive their original asset back.
CPI is Coming to HotBit
Interested parties may want to mark July 15, 2020 on their calendars. On this date, Crypto Price Index will release CPI tokens to the public on the HotBit exchange. Those who want to know more about the project and the upcoming sale can check out the Crypto Price Index website.