Crypto20
Crypto20
Token: C20


The First Tokenized Cryptocurrency Index Fund

PreICO dates
Start date: 7th Oct 2017
End date: 14th Oct 2017

ICO dates
Start date: 2017-10-16
End date: 2017-11-30

Registrated in: USA

Platform: Ethereum
Type: ERC20

PREMIUM ICO

https://www.crypto20.com/ Screenshot
Crypto20 categories
Investment
Video
Crypto20 token sale
KYC passing required No | Whitelist No | Restriction for countries No
Hard cap 86,206,896 C20
Tokens for sale 75,000,000
Token distribution in ICO
87%
87%
Price 1.10 USD
Acceppting ETH
Crypto20 news, social
Crypto20 search trends in Google
Random whitepaper excerpts

EXECUTIVE SUMMARY
Cryptocurrencies have grown exponentially since their creation
in 2009, with the total cryptocurrency market capitalization
currently standing at over $150 billion. While growth has been
strong, the market capitilization of cryptocurrencies as a whole is
still only a fraction of that of the S&P 500 index - which is itself
only a fraction of the global stock investment market. There is still
room for considerable growth.
There are now thousands of cryptocurrencies to choose from,
with more appearing each day. Choice paralyzes - choice adds
cost, complexity and the need for advice. High risk, extreme
volatility and practical difficulty compound to render buying
and safely storing an effective and diverse portfolio of coins
(cryptocurrencies) a complex problem.
CRYPTO20 is the worlds first cryptocurrency-only tokenized
index fund, and aims to provide a solution to this problem. The
portfolio will autonomously maintain a diverse portfolio of the top <...

C
ONTENTS
I INTRODUCTION
4
II TYPICAL PORTFOLIO & FUND STRUCTURES
5
III RATIONALE BEHIND A CRYPTO INDEX STRATEGY
5
IV SMART CONTRACT SPECIFICATIONS
6
V LIQUIDATION OPTION
7
VI TOKEN DISTRIBUTION AND STRUCTURE
7
VII PORTFOLIO HYPERPARAMETERS
7
VIII REBALANCING METHODOLOGY
10
IX SECURITY & TRANSPARENCY
10
X TRADING STRATEGY
10
XI AUTOMATION
11
XII MARKETING AND INVESTOR RELATIONS
11
XIII ICO FUNDS UTILIZATION
12
XIV REPORTING
12
XV PROJECT TIMELINE
12
XVI CONCLUSION
13
References
13
XVI-A RESTRICTIONS ON DISTRIBUTION AND DIS-
SEMINATION . . . . . . . . . . . . . . . . . . . . 15
LEGAL DISCLAIMER:
1. Prospective ICO Participants should inform themselves as to
the legal requirements and tax consequences within the countries
of their citizenship, residence, domicile, and place of business

ABSTRACT
CRYPTO20 is an autonomous cryptocurrency-only portfolio
composed by utilizing an index strategy. The token sale funding
will be used to buy the underlying cryptocurrency assets
and CRYPTO20 will hold the top 20 cryptocurrencies by
market capitalization. CRYPTO20 cuts out the middleman,
the platform, and is thus able to offer significantly lower fees.
Index funds have consistently beaten the average managed
fund since their inception.
CRYPTO20 is not a platform, it is a fully functioning
product and its token value is not based on speculation but
rather the product benefits and net asset value of the 20
underlying cryptocurrencies. There are no broker fees, advice
fees or exit fees. CRYPTO20’s utility token is called C20. It
can be traded at any time, holdings are fully transparent and
there are no legacy banking fees or expensive fund managers.
C20 tokens are directly tied to the underlying assets with
a novel liquidation option that can be exercised ...

II. TYPICAL PORTFOLIO & FUND STRUCTURES
III. RATIONALE BEHIND A CRYPTO INDEX
STRATEGY
Index investing has seen exponential growth among
investors since the first index mutual fund was launched
in 1976. This has proven to be a successful form of
investment as the low-cost involved has allowed index funds
to outperform the majority of active managers across market
and asset styles.
Fig. 1. Comparison of managed vs. index funds [3]
Over a 10-year investment horizon more than 80%
of large-cap fund managers failed to outperform their
benchmark index. The odds of picking a winning fund
manager are also low: studies show that regardless of past
performance, future performance is virtually random [4].
Definitions:
Open-end mutual fund:
An open-end fund is a mutual fund issuing unlimited
shares of investments in stocks and/or bonds. Investing
creates more shares, whereas selling shares takes them out
of circulation. Shares are bought and sold on ...

underperforms the market by the same amount, such that, in
aggregate, the excess return of all invested assets equals zero.
This zero sum around the market weighted mean return
means that for every profitable trade an investor makes,
another investor must make the opposite side of that trade
and incur a loss relative to the market. This holds true
regardless of whether the coin or token in question is
mispriced or not, and for the same reason, the zero-sum
game theory must apply regardless of market direction.
- Ethereum smart contracts enable a very transparent way
of offering a liquidation option.
The smart contract complies with the ERC20 token
standard [8] and can be used from any compatible Ethereum
wallet. The contract code facilitates an ICO crowdsale by
specifying a start and end block number so as to restrict
certain functions during the ICO period. The token to ether
price ratio is adjusted dynamically throughout the presale
such that token price tracks...

bought is fixed during the ICO and that no further tokens
are minted; participants are assured a maximum minimum
withdrawal amount that is independent of all market forces
µ
i
. The implications of this are explained below.
V. LIQUIDATION OPTION
High-volume traders may seek to exploit pricing to the
detriment of the community by initiating sell-offs that
cascade and result in flash crashes so that they can purchase
the cheap tokens. The liquidation option offers a price floor
protection – this ensures the price never drops below that
of the underlying assets because of market manipulation.
Prices are, however, free to increase as speculative value is
created by the high demand for a low-cost, diversified and
automated cryptocurrency portfolio that can be held as a
single token.
A small, dynamically allocated percentage of
CRYPTO20’s assets will be held by the smart contract
(in ether) to facilitate the liquidation option. This amount
...

presented in ordered sections for clarity.
1
Section A: Rebalancing Frequency
Rebalancing is the act of periodically adjusting a portfolio
such that its asset composition reflects the index it aims
to track. Rebalancing an index fund not only reduces risk
but also increases the median return. Daily, weekly and
monthly rebalancing periods were investigated as well as no
rebalancing.
Hypotheses:
A1
: It is hypothesized that a rebalanced portfolio is
likely to provide a greater median return. This means that a
rebalanced portfolio is likely to outperform a non-rebalanced
porfolio over multiple periods. The test conducted will
therefore be over multiple windows with each point on the
line graph representing the portfolio value at the end of the
window.
Fig. 3. Portfolio Performance for Different Rebalancing Frequencies
A2
: The rebalancing frequency needs to achieve a balance
between accurately tracking the index and keeping turnover,

Fig. 5. Portfolio Performance for Different Number of Coins
C2
: It is hypothesized that decreasing the cap correlates to
an increased total expense ratio as coins with lower market-
cap (and thus lower index ranking) will have a higher than
normal weighting and thus incur greater expenses when they
churn in and out of the index.
Tests:
A back-test of portfolio value for top 20 coins at market
cap ceiling
∈ {
10%
,
20%
,
30%
,
40%
}
with weekly rebalanc-
ing was performed. A pure market-share weighted (no cap)
portfolio was also back-tested for comparison.
Fig. 6. Direct Return Comparison for Different Number of Coins
Fig. 8. Portfolio Performance for Different Market Caps
Fig. 7. Expenses for Different Number of Coins
Analysis and Conclusions:
B1:
The number of coins in the tracked index does seem
to be correlated to the portfilo’s return and expense ratio. The
number o...

Crypto20 Roadmap

1
JAN - APR 2017
Initial Research and Development
Developed the team and concept; conducted thorough backtests to determine fund hyperparameters; set wheels in motion to create a compliant legal structure.
2
APR - JUN 2017
Develop Smart Contract & Autonomous Trading System
Developed innovative CRYPTO20 smart contract to best practice specifications; developed back-end for multi-exchange trading.
3
JUN - JUL 2017
Finalize Smart Contract & Trading Protocol
Complete smart contract to audit-ready state. Optimized autonomous index trading algorithm to mitigate front-running and slippage. Consultation with industry expert advisors.
4
JUL - SEP 2017
Test Trading System; Security Audit
Began security audit and code review process.
5
16 SEP 2017
CRYPTO20 Public Launch
Go public! Begin marketing and public relations. Token presale on 7 Oct.
6
7 OCT - 14 OCT 2017
C20 Token Pre-Sale
5% Bonus will be given to investors participating in the pre-sale.
7
16 OCT - 30 NOV
C20 Token ICO
Token ICO. Tokens minted and issued to investors.
8
1 DEC 2017 - 14 JAN 2018
Initial Top 20 Coin Acquisition; On-going Marketing & Investor Relations; First Rebalancing Procedure
Initial coin holdings acquired; final fund sheets and reporting structures released to retail investors. First fund rebalance is performed and monitored.
9
BEFORE 14 JAN
Public Audit of ICO Funds
Big 4 Accounting Firm to audit and release statement verifying holdings.
10
15 JAN 2018 - FUTURE
Public Launch on Exchange; Data Collection; Regular Fund Operation
C20 Token is listed for trade on exchange. The data pulled from the multiple exchanges - order books, volumes etc. will be stored. After ~6 months of operation, the deep dataset collected will be used to inform future crypto product and fund development; incl. AI-managed funds by partner DataProphet. CRYPTO20 ICO participants will have priority acceptance into these very limited cap funds.
Daniel Schwartzkopff
Daniel Schwartzkopff BUSINESS DEVELOPMENT, MARKETING OPERATIONS

Luke Schwartzkopff
Luke Schwartzkopff BACK-END DEVELOPMENT, DATA ENGINEERING

Raymond Botha
Raymond Botha SYSTEMS ENGINEERING, AUTOMATED TRADING, ENTERPRISE ARCHITECTURE

Bobby Jonker
Bobby Jonker AUTOMATED TRADING, FINANCIAL MARKETS

Matthew Finlayson
Matthew Finlayson BLOCKCHAIN DEVELOPMENT, SMART CONTRACT DESIGN

Frans Cronje
Frans Cronje STATISTICAL FINANCE, DATA SCIENCE

Jon Matonis
Advisors Jon Matonis FOUNDING DIRECTOR AT BITCOIN FOUNDATION, EXCHANGE TECHNOLOGY

Jeremy Drzal
Advisors Jeremy Drzal GROWTH ADVISOR, ACCELERATION SERVICES

Oliver Laurence
Advisors Oliver Laurence STRATEGY DEVELOPMENT, PRODUCT COMMERCIALIZATION

Dan Doney
Advisors Dan Doney SECURITY ASSESSMENT, STRATEGY ADVISOR

Sergei Kolobov
Advisors Sergei Kolobov BLOCKCHAIN, ADVISOR PAYMENT SYSTEMS, INTERNATIONAL RELATIONS

Theodosis Mourouzis
Advisors Theodosis Mourouzis CRYPTOGRAPHY, DATA ANALYSIS, BLOCKCHAIN ADVISOR

Grant Gohl
Advisors Grant Gohl PRODUCT DEVELOPMENT, FRONT-END DESIGN, MARKETING

Shad Paterson
Advisors Shad Paterson MARKETING MANAGEMENT, TOKEN STRUCTURE, PROMOTIONAL NETWORKING

Bernard Myburgh
Advisors Bernard Myburgh COMMUNICATIONS ADVISOR, FILMMAKER, FRONT END DEVELOPMENT

Francisco Jo
Advisors Francisco Jo FOUNDER AT COINHILLS, COMMUNICATIONS OFFICER, MARKETING

Andrei Danilov
Legal Andrei Danilov INTERNATIONAL LAW, TAX ADVISORY, GOVERNMENT COMPLIANCE

Brian Konradi
Legal Brian Konradi INTERNATIONAL LAW, SECURITIES REGULATION, GOVERNMENT COMPLIANCE

Peter Khokhlov
Legal Peter Khokhlov CONTRACT LAW, DUE DILIGENCE, CORPORATE LAW

Daniel Schwartzkopff
Daniel Schwartzkopff
BUSINESS DEVELOPMENT, MARKETING OPERATIONS
Luke Schwartzkopff
Luke Schwartzkopff
BACK-END DEVELOPMENT, DATA ENGINEERING
Technical Director, Data
Technical Director, Data
Raymond Botha
Raymond Botha
SYSTEMS ENGINEERING, AUTOMATED TRADING, ENTERPRISE ARCHITECTURE
Matthew Finlayson
Matthew Finlayson
BLOCKCHAIN DEVELOPMENT, SMART CONTRACT DESIGN
Technical Director - Blockchain
Technical Director - Blockchain
Blockchain Engineer
Jon Matonis
Jon Matonis
FOUNDING DIRECTOR AT BITCOIN FOUNDATION, EXCHANGE TECHNOLOGY
Chairman, Strategic Adviser Bitcoin & Blockchain, Entrepreneur
Founding Director of the Bitcoin Foundation
Founder of Bitcoin Foundation
Chairman
Advisor
Founding Director at Bitcoin Foundation. CEO of Hushmail. Startup Team at RSA's VeriSign.
Blockchain advisor
Head of Advisory Board
Oliver Laurence
Oliver Laurence
STRATEGY DEVELOPMENT, PRODUCT COMMERCIALIZATION
Strategy Development Expert & ICO Mentor
Dan Doney
Dan Doney
SECURITY ASSESSMENT, STRATEGY ADVISOR
Tech Specialist Advisor
Sergei Kolobov
Sergei Kolobov
BLOCKCHAIN, ADVISOR PAYMENT SYSTEMS, INTERNATIONAL RELATIONS
Theodosis Mourouzis
Theodosis Mourouzis
CRYPTOGRAPHY, DATA ANALYSIS, BLOCKCHAIN ADVISOR
BLOCKCHAIN ADVISOR
Cryptologist, UCL Centre for Blockchain Technologies
Blockchain & Strategic Advisor
Advisor
Cryptography & Blockchain Specialist
Advisor
Cryptography & Blockchain Specialist
Grant Gohl
Grant Gohl
PRODUCT DEVELOPMENT, FRONT-END DESIGN, MARKETING
Creative Lead
Bernard Myburgh
Bernard Myburgh
COMMUNICATIONS ADVISOR, FILMMAKER, FRONT END DEVELOPMENT
Content and Media Producer
Francisco Jo
Francisco Jo
FOUNDER AT COINHILLS, COMMUNICATIONS OFFICER, MARKETING
ADVISOR
CIO, Coinhills
Founder & CIO at Coinhills
Founding Partner at BlockWater Capital
Andrei Danilov
Andrei Danilov
INTERNATIONAL LAW, TAX ADVISORY, GOVERNMENT COMPLIANCE
Chief Strategy Officer
Brian Konradi
Brian Konradi
INTERNATIONAL LAW, SECURITIES REGULATION, GOVERNMENT COMPLIANCE
Chief Executive Officer
LEGAL ADVISOR
Peter Khokhlov
Peter Khokhlov
CONTRACT LAW, DUE DILIGENCE, CORPORATE LAW
Chief Operating Officer