I own some, because I bought during the ICO, but there are two things that prevent me from buying more:
a) Why pay them 2%+ in fees to do this when I can diversify a portfolio given their public investment breakdown on a certain exchange given their numbers and avoid the fees? i.e. I could go on poloniex and own 15% btc, 15% eth, GNT, DASH, XMR, SIA, and their other coins in the prescribed ratios
b) How is our money insured? Crypto may or may not be in a bubble right now, but if it bursts and the fund drops a huge amount, what prevents the people holding our coins from running?
Also curious how the fees work, are they amortized after someone sells? Or on a regular schedule? i.e. if we have $1000 at start then $2000 end of month one, do they deduct fees then, and if it drops to $1000 again we lose money despite fund being even?
a) Certainly, if you understand cryptocurrency, and have been in this space for sometime, then you might decide you can do a better job yourself. I will use it as a diversification tool. 3% Management fee is for me, a small cost for the level of diversification you gain..
b) Certainly there are consideration here. I assume here that, if you put your money into ICNX, as long as they have outflow measures, your money should be as safe as it would be at Coinbase (but granted, that is not ideal).
Performance fee for ICNP will be charged on EXIT
Management Fee will be charged annually against your holding
My investment case is more base around assets the company currently own, with the additional revenue to come in the future.. Your points are certainly justified though...
I agree, the 3% is reasonable considering some of the other projects like ShapeShift's Prism. High fees for the ease of diversification. They have the counterparty risk.
You seem like you know what your talking about, I need more of that; following.
Interesting counter-arguments. I guess some people want instant diversification without having to deal with many different coins / exchanges, but I would personally tend more towards your approach, i.e. just manage a diversified crypto portfolio that I directly control.
@hisnameisolllie (adding here to avoid double commenting)
Yes, it is easy and instant, but when they post what they invest in and their index weights, it is pretty easy to copy and rebalance weekly. Wouldn't even have to figure out what to invest in on your own.
I definitely won't be pulling my existing money out of iconomi, but I may just use my poloniex account to diversify in the same manner they do. That said, there are a finite number of ICN tokens, and more are not being created, so I suppose it is possible the coins could be worth more than how well the fund does? Or is that not true?
You're right, with limited number and their own buybacks, the tokens might be bid up. I think you did well to wade in at the ICO to have a stake, but as you say, quite a few uncertainties. Who can even guarantee that their portfolilo allocation is superior? If there is a human factor involved, then the result might be similar to stocks, where over 90% active managers underperform the overall market...
@cloudzombie: Yep, certainly understand that point of view. I think ICONOMI's success will come in on boarding crypto noobs....
and to @daut44 point, ICN token will represent the underlying net assets value, plus a multiple on current/future earnings...
I am more interested in the ability to simply create portfolios for others to buy into.
Nice criticism, following ya!
This is where I saw the most utility. 3% to me is a high fee to charge for managing a crypto fund. There's no way I'd allow that from someone managing my stocks/bonds (and thus why I manage my own).
With that said, high cost fund managers exist because they are utilized, and this will work because it fulfills a a lazy investment niche.
Thus, if I could create a portfolio offering that has a proven track record, why not provide that.
Yep
I can't wait until they release more.
I presume I can sign up for a mailer for when more will be released?
Yep, I believe they have a subreddit too.
I am also invested and share similar concerns. Not much though. I would rather have my money in a platform like iconomi rather than an exchange.
Alot of your questions are answered in the newest AMA for Iconomi on Reddit that just happened yesterday. One of them which I recall clearly is that they ARE adding insurance.