Fundamental Pick: Astronaut Capital

 

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ADDRESSING THE TRUST, ACCESSIBILITY AND MANAGEMENT ISSUES OF ICO’S BY PROVIDING A UNIQUE CRYPTOCURRENCY INDEX FUND

 

PROBLEM TO SOLVE


Since early 2017, the ICO market has grown exponentially as entrepreneurs begun to realise the potential of a new funding mechanism that could raise millions of dollars in a matter of minutes. For example, the ICO for a web browser, developed by the creator of Javascript managed to raise over $35 million dollars in under 30 seconds. Such an efficient funding vehicle had never been seen before, even in the world of venture capital. Both institutional and retail investors were invited to participate, finally allowing mom and pop to get in on the ground floor of what could be some of the most innovative blue-chip firms one shall see in their lifetime.

However, although many ICOs have genuinely good intentions and wish to use their funding to create innovative new products on the Blockchain, some saw this as an opportunity to quickly exploit individuals with a false promise and exit the market quickly. Hence, navigating this vast new ecosystem successfully and profiting from your findings is no easy feat for the average layman.

Additionally, the process of registering and applying for ICO crowd sales is tedious and time-consuming, with cumbersome KYC barriers often putting potential consumers off. Despite this, even if they do decide to make the purchase, management of numerous assets after the fact can become a difficult procedure, with many wallets only offering limited functionality for ICO coins.

Finally, although ICOs promise to accessible to all, whether this is actually the case is highly debatable. Prospective consumers must jump through hoops to find exactly where and how to buy the tokens until their funds are needed. This is often the result of a large majority of such assets being sold to large investors prior to them reaching the public market

 

SOLUTION


Astronaut aims to address the trust, accessibility and management issues of Initial Coin Offerings by providing their own ICO index fund token (ASTRO). Essentially, this allows investors to gain exposure to a varied basket of ICOs without needing to undergo the rigorous due diligence needed in order to profit from this emerging market. The index is carefully balanced by industry experts to ensure maximum profits can be acquired at any given time.

First, to address the point of trust, Astronaut works under the umbrella company Picolo Research. A well-respected cryptocurrency analysis firm with over 10,000 monthly subscribers. They strive to find the most appealing ICO offerings through in-depth fundamental analysis of notable up and coming firms by a team of highly trained professionals. Their articles are clear and concise as possible to help investors understand why a certain ICO has been added to their weighted index portfolio.

Second, in regards to accessibility, ASTRO breaks down industry barriers by buying in bulk from ICOs they wish to add to the index, allowing them to access pre ICO prices and most importantly having the contacts and information to successfully purchase popular projects. This takes the onus off the retail investor and places it in the hands of the well-versed Astronaut team. One merely has to purchase the ASTRO token to gain access to a well researched varied ICO portfolio that is weighted according to market conditions. This universal exposure is often what consumers desire yet simply do not have the time or the resources to pursue.

Finally, on the subject of asset management, Astronaut actively monitor their positions and are not afraid to exit them where a particular ICO has not met their projected expectations. This takes the need for investors to continuously monitor their positions out of the equation, which may be of particular interest to long-term holders or newbie investors who are simply not equipped to tackle this extremely volatile emerging market. Being able to quietly participate in a market using an index allows one to gain exposure to a clearly booming sector without all the associated risks.

 

APPLICATIONS


The ASTRO token provides two types of return for its investors. Firstly, users receive quarterly income distributions based on the amount they invest and their exit activity. Secondly, holders gain any token appreciation aligned with the Net Asset Value (NAV) of the index fund.

Access to the Astronaut index fund is simple for anyone who has invested in an alt-coin in the past, it can simply be bought online at an exchange under its prefix ASTRO. Whether one decides to include this as part of an already manageable portfolio, under the umbrella of ‘ICOs’ or if they wish to let the company manage the entirety of their portfolio, allocating all funds to ASTRO is completely up to the investor. The former is probably most appropriate with a mix of high cap names such as Bitcoin and Ethereum.

 

SUMMARY


Whilst the cryptocurrency market continues to evolve, opportunities to invest in ICOs can provide huge rewards for those who are willing to spend a considerable amount of time researching. Despite this, the risks associated with ICOs can leave naive investors wishing they never entered the market in the first place. For the latter Astronaut provides an easy way to gain access to a well-researched basket of cryptocurrencies without undergoing the due diligence. Definitely, one to consider for those who want to benefit from the ICO boom whilst remaining cautious.

 

CATALYSTS


First-Mover Advantage: Crypto index coins are a relatively new concept in the Blockchain ecosystem, currently ASTRO’s only competitors are Crypto20 and TaaS, this could give them the edge over future equivalent competitors who enter the market

Qualitative Approach: Unlike their competitors, ASTRO heavily focus on in-depth qualitative fundamental analysis to choose their picks and self-weight the portfolio according to the strength of projects, whilst many other index funds use an algorithmic equation to balance top coins against each other according to current market conditions

ICO Focus: Of the few crypto index funds available, most focus on top coins by market cap, whilst ASTRO have chosen ICO’s as their UPS, a much more challenging environment for consumers to invest in successfully

 

RISK FACTORS


Reliance: Whilst relying on experts who understand the ICO landscape extremely well may be more successful than investing personally, you are ultimately avoiding putting in the due diligence yourself, studying their methodology for allocating coins to your portfolio is highly advisable

Small-Cap: Currently the project is listed as 750 by Market Cap on coinmarketcap.com, hence the project has yet to gain large amounts of traction, there is certainly a need for the expansion of the number of exchanges that ASTRO is listed on

 

CONCLUSION


The ICO market has seen both the biggest winners and losers in the cryptocurrency marketplace to date, yet picking the winners is no easy feat. ASTRO may provide a safe haven for investors who seek to gain exposure to such a market without the undeniable risks associated. Relying on others to do research for you is often risky business, yet with a sound methodology centred around fundamental analysis and a well-regarded team, the project appears to have great promise. Besides, not all individuals have the time or knowledge to pursue such due diligence on a market which is certainly overwhelming and continuously expanding. For this reason, ASTRO is certainly one to watch as they grow.


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