CRYPTO20 (C20) Bursts Into Top 100 on 136% Spike; Index Fund Time?

The market cap top hundred gained another new entrant on Tuesday in the form of CRYPTO20 (C20). The Ethereum-based token gained 136% in a rapid spike on one of the mere two exchange’s it’s listed on.

The project launched in late 2017 as one of the first tokenized cryptocurrency index funds. Since launch, the value of its C20 token, and the altcoin assets behind it, have done nothing but decline.

Crypto Index Fund

After that year long decline, the value of C20 took a sudden upturn in December 2018, as Bitcoin and the rest of the cryptocurrency market rebounded from yearly lows. Given the recent upturn in the fortunes of the crypto market, this might seem like the best time to invest in a crypto index fund.

Such funds are useful for those who want to gain from the crypto price rush without going through the process of buying multiple cryptocurrencies. The CRYPTO20 fund contains 20 currencies weighted and modified against weekly performance.

At time of writing the fund contains 12% worth of Ethereum and 9.9% worth of Litecoin, Bitcoin and XRP. The rest of the market cap top 20 are present in steadily declining amount.

The value of the global crypto market has only grown since last December. One would assume the value of the C20 index fund would rise broadly in line with the market (or at least, the top twenty coins).

Performance

With C20 listed on just two exchanges, the opportunities to cash out would be slim. But with that said, the value of C20 has actually outperformed the rest of the market in the past six and a half months. And that’s NOT including today’s spike.

Since the global market cap dropped to $100.4 million on Dec 15th, 2018, it has since rebounded to the tune of 180%.

Since C20’s own low of $0.261481 on the same day, its value has since increased by 216%. As mentioned before, that’s not including today’s 136% spike, which if included would send C20’s total gains to 649%.

Given the magnitude of this spike, those numbers probably won’t hold for long. And one question which boggles the mind is – how does C20 represent the value of the cryptocurrencies it’s pegged to if C20 itself is actively traded – even against the same coins in its index?

Either way, a middling trader who follows the recommendations of a skilled technical analyst could probably beat the 216% gains made by C20 in that time. Maybe even the 649% C20 briefly peaked at on the day.

Likewise, those who bought the December lows of Litecoin, Bitcoin Cash, Bitcoin, Ethereum, etc, could have handily outpaced C20.

CRYPTO20 Price C20/BTC

From Tuesday’s daily low of $0.827611, the value of C20 spiked to $1.96 within minutes.

The source of the spike was the P2PB2B exchange, where both C20 soared in both the BTC and ETH markets. Prices on HitBTC remained stable, while the USD price of C20 on P2PB2B was oddly the lowest of all.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Chart via CoinMarketCap.

Author:
Greg Thomson is a freelance writer who contributes to leading cryptocurrency and blockchain publications like CCN, Hacked, and others.