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