0

I recently stumbled upon CRYPTO20 (https://crypto20.com/en/).

It is a form of tokenized cryptocurrency fund where they issue a single C20 token that tracks the performance of the underlying crypto assets. On the website it says:

provides a way to track the performance of the crypto markets as a whole by holding a single crypto asset.

So I was wondering how it is possible to create a token whose price is not determined by supply or demand but represents the value of some underlying assets (like an index)?

Or maybe I'm not understanding this correctly, but here are some codes from their smart contracts: https://github.com/cryptotwenty/smartcontracts

Any insights appreciated

1
  • I'm not sure about this token in particular, but usually for synthetic assets the price is maintained by arbitrage bots.
    – Ismael
    Oct 24 at 22:44

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.