Crypto market has just lost 3.49%Over the past day, $1,6 trillion has been reached. The cryptocurrency market is falling because of concerns over Russia, Ukraine and the Federal Reserve’s rate rises in the U.S. Although many investors are worried about a crypto-winter, diversification remains vital.
NewsBTC spoke with James Wang, Amun’s Head for Tokens. He explained that index tokens provide instant access to liquidity assets of the highest performance and greatest risk, help diversify portfolios and spread the risk.
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Total crypto market cap of $1,6 Trillion in daily chart | TradingView.comAmun Limited is a technology company that simplifies the access to Passive investmentCrypto through Index Trading Products, which provide broad exposure To particular DeFi and blockchain ecosystems.
James Wang explained that although crypto index funds have not yet become popular as a trading option, they are still very much in demand.They are an extremely useful tool as users have instant access to diverse assets and do not need to manually manage them.
He noted that this greatly simplifies the purchasing process, cuts down on transaction fees associated with buying individual coins and offers a simpler way for investors new to crypto investing to get started.
Amun index trading products can be a tool in times of volatility because traders can move their exposure “towards a specific market segment that might be weathering the storm better than others.”
“Dollar-cost averaging for most investors is the best way to allocate capital. DCA can be used to spread risk across time. Index investing spreads risk out over time. By employing both, investors can gain crypto exposure without the headache of deciding when or what to buy.”
Wang noted that “Almost all the growth in the S&P 500 in recent years were driven by tech and biotech” and added that Amun believes “blockchains are the next chapter of the internet and having exposure in this emerging field could be as rewarding as investing during the early years of the internet.”
“From a product perspective, the S&P 500 index has been a benchmark for the industry and a key indicator of the US economy. We hope to create an index that will serve as the benchmark of the crypto economy over the coming years.”
Safety, Fluidity, And Diversity
Wang pointed out that Amun’s tokens consist of some of the most dependable projects in crypto, “the largest and most established DeFi projects on tier-1 blockchains like Ethereum, Solana, and Polygon.”
“You no longer need to sign up to an exchange or hire a broker to invest in industry indexes.”
As crypto users demand safety, fluidity, and diversity of their transactions, Wang noted that “Fluidity and diversity are considerations already baked into index investing,” like so:
“Diversity of investment is achieved by grouping 8 or 10 leading projects in a given market segment and giving users exposure to each of them. There are many unique uses for the blockchain, so the potential number of possible indexes will be limited. Fluidity is provided by the ease with which users can enter or exit an investment at the click of a button via token swaps or minting.”
Wang also stated that “t” is a synonym for “Real”.he open-source protocol Amun is built on passed multiple audits before being released, and they are part “of a large, vibrant community of developers that are busy maintaining and refining the underlying technology,” thanks to their integration with Ethereum, Polygon, and Solana.
Crypto Mass Adoption
Wang believes that Wang was right during DeFi and NFT boom we are witnessing, “some people are probably more familiar with the NFT space than the crypto space in general.” However, uIndex tokens sing gives everyone “a chance to invest without having to exhaustively research an entirely new industry and provide easier financial management than investing manually.”
Wang sees this as a possible outcome. Index tokens will play an even greater role in the future.
“Suppose we can get people to understand the benefits of investing in index tokens,” he said. “In that case, I think it could play a role in the mass adoption of cryptocurrencies — not least through their inherent simplification and ease of use. “
Wang stated that Amun’s next products “will aim to give investors broad exposure across all blockchain platforms.” With a “total blockchain index”, they intend to launch a product that “will serve as the S&P 500 of crypto by representing all smart contract platforms such as Ethereum, Solana, Avalanche, and Fantom.”
Furthermore, Wang also noted that while “centralized exchanges are the main targets for regulators right now,” “Decentralized assets being traded on decentralized exchanges are the furthest away from regulatory scrutiny at the moment.”
However, the following regulatory framework will inevitably shift, “we’ll ensure that at every step we are doing all we can to stay fluid and evolve however we need to, to comply with new regulatory requirements.”
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