Token Analysis – ICONOMI – Digital Assets Management Platform - Crush Crypto

Token Analysis – ICONOMI – Digital Assets Management Platform

Summary


Project Overview

What does the project do?

ICONOMI is a digital assets management platform where people can easily invest in digital assets. Cryptocurrency investing is volatile and complicated for those who are new, so ICONOMI wants to be the place where new investors put money in when it comes to crypto investing.

Currently, ICONOMI has two in-house funds, managed by Columbus Capital:

  • Columbus Capital Blockchain Index, which is passively managed and is similar to an index fund like the S&P500. The components of INCX represent over 92% of the total market capitalization of all digital assets.
  • Columbus Capital Pinta, which is an actively managed high-performance fund, similar to a hedge fund which takes a portion of the profits as performance fee.

In the future, ICONOMI will allow crypto investors to launch their own fund (called Digital Assets Array or DAA). Users will be able to find the DAA that matches their investment objectives.

How advanced is the project?

ICONOMI had its ICO in August 2016. The platform is currently in beta where only ICO contributors have access to. Public launch is scheduled in August 2017.

As at June 26, 2017, ICONOMI has $39 million assets under INCP. ICONOMI has a target of $200 million assets under management by the end of the year.

In May 2017, ICONOMI launched an app on iOS where users can get up-to-date information on ICONOMI’s two DAA – INCX and INCP.

How can token holders make money?

ICN tokens represent ownership of the ICONOMI platform, allowing their holders to receive dividends and vote on ICONOMI related issues.

The profits generated by ICONOMI will be used to purchase ICN from the open market. At the end of each quarter, all the repurchased tokens are burned, reducing the supply of ICN. This is similar to share buybacks used by stocks.

There are multiple streams of revenue:

  • ICNX charges a 3% annual management fee as well as 0.1% entry/exit fee.
  • ICNP charges 20% of profits generated.
  • 1/3 of management and rebalancing fees of all user-created DAAs on the open fund management platform (user-created DAAs can charge anywhere from 1-10% of assets per annum).
  • Any fees generated by people buying Ether from ICONOMI.

ICONOMI spun off its ICO advisory project Cofound.it where it had its own ICO in June 2017. ICONOMI holds 10% of Cofound.it’s token CFI and have investment access to Cofound.it’s project at an early stage.

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Team

As at 2017 Q2, ICONOMI had a team of 30 plus 4 outsourced members.

Tim Zagar, CEO – serial entrepreneur. He started working full time on blockchain projects in 2013 with the goal of connecting the crypto field to the existing banking world. He co-founded Cashila, which serves as the first service operator of the ICONOMI platform.

Jani Valjavec – CTO Trading – Co-founder of Cashila. He is active on the ICONOMI subreddit.


Post-ICO Developments

  • August 2017 - ICONOMI platform is open to public.
  • August 2017 - Application to become ICONOMI's DAA manager is open.
  • August 2017 - ICONOMI partners with Columbus Capital to manage ICONOMI's existing DAAs (ICNX and ICNP), renaming them to Columbus Capital Blockchain Index and Columbus Capital Pinta, respectively.

Opportunities

  • It has the best potential to be the Vanguard of cryptocurrency investing because it doesn’t just manage 1 or 2 funds like most of its other competitors – it has the potential to offer hundreds of different funds for users to choose from.
  • It is positioned to attract lots of assets from novice crypto investors who don’t follow the market closely.
  • It has a first-mover advantage, being one of the earlier ICOs.
  • Profits are used to reduce the token supply, which means that the company doesn’t need to increase value in order for ICN value to rise. For example, even if ICONOMI’s market cap stays at the current level, as long as it can generate profit to burn ICNs, each token will be worth more over time as they represent a bigger share of the company.
    • This is different from most other ICO projects where they need to increase value in order for token price to rise.
  • ICONOMI has a large book value that is highly correlated with the overall crypto market from its in-house fund alone.
  • ICONOMI has transparent communication with the public, with monthly AMA on their subreddit page, and monthly update and quarterly report on their blog.

Concerns

  • The company’s burn rate is over $600,000 a quarter. ICONOMI may not be able to generate enough profit to cover its expenses.
  • Cryptocurrency fund management is a competitive business and there are lots of competitors coming up.

Conclusion

Overall, I like ICN as an investment. I believe digital assets will become a legit asset class, alongside with commodities and real assets. If this happens, ICONOMI will be in a great position to capture billions of asset under management because its platform allows the inclusion of funds with different investment styles.

ICN is a leveraged play in crypto investment, so if you believe cryptocurrency will have a bright future, investing in ICN should yield a stronger return than the overall cryptocurrency market. On the other hand, if you think that cryptocurrencies are just a fad and will not reach mainstream, you should not invest in ICN.


For more information about the token, please visit the following links:

Website: https://www.iconomi.net/

ICONOMI blog: https://medium.com/iconominet

ICONOMI subreddit: https://www.reddit.com/r/ICONOMI/

Dashboard for ICNX and ICNP: https://www.iconomi.net/dashboard/#/INDEX

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