Index token for a investment fund

[Crox051]

Hello, I'm running a private crypto investment fund and was looking for a way to implement an index token to show our clients the fund performance.
Do you know what would be the best way to do it? Any apps or sites?
Untill now we were reporting, at the end of each month, the total amount in USD, but now we would like to switch it and possibily one day make that token tradable.
Thank you

[noorman0]

I think it's some kind of portfolio tracker, check this out https://www.cryptocompare.com/portfolio

-snip-
and possibily one day make that token tradable.

What do you mean by "tradable oneday"? Are you risking investors' money with tokens that are currently not even listed on the market? The tool above of course will not work in such conditions, and there may not be any tools currently.

[MusaMohamed]

Hello, I'm running a private crypto investment fund and was looking for a way to implement an index token to show our clients the fund performance.

Two biggest cryptocurrency marketcap websites have their portfolio trackers and free to use.

https://www.coingecko.com/en/portfolio
https://coinmarketcap.com/portfolio-tracker/

Portfolio performance application is open source. RickDeckard spent time to wrote Portfolio Performance [Open Source] - Keep track of your Crypto Portfolio! topic for community.

[odolvlobo]

If you want to create a token on Bitcoin, you can potentially use Ordinals or Omni (if that is still a thing), but I think an ERC20 token on Ethereum would be better.

If the token represents shares of the fund and it can be traded, then you must be careful in the U.S. because the token would be a security.

[joniboini]

but now we would like to switch it and possibily one day make that token tradable.

Why do you need to do that though? Is your company suffering from a lack of funds or something? From what I saw, most index tokens end up becoming worthless, so I doubt any big investors would buy your tokens. Even if you target the retail market, the question of why they would buy your token still remains. Not to mention, your index can be worthless if it just tracks your portfolio performance and you are the one who issues and burn the token, making it unreliable since you can just flood the market anytime you wanted to. Not to mention there are tons of similar tokens on the market with arguably bigger and more famous companies backing them.

I suggest looking for an alternative if the operational fund is your issue. Most small/medium projects that launch this token usually don't have any good reputation after they launch an index token since they end up worthless and illiquid. Offering a new tier of service or branching out to another investment service is probably a better idea, even if the execution is harder.

[yhiaali3]

Untill now we were reporting, at the end of each month, the total amount in USD, but now we would like to switch it and possibily one day make that token tradable.

If you are looking for a token to show the performance of the fund every month instead of the dollar, then you need a stable token whose value is equal to the dollar, otherwise how do you guarantee the confidence of customers in your indicators that depend on a token whose value is unstable.

You need a stable coin to ensure that your indicators are correct, because a drop or rise in the price of the token will give incorrect indicators.

[merekamo]

I think implementing an index token is a great idea for your private crypto investment fund. It's a good way to show your clients the fund's performance in a more transparent and accessible way.

There are several DeFi platforms that you can check out to create your index token, such as Balancer, Uniswap, and TokenSets. These platforms offer various features and benefits, so it's worth exploring each one to see which is the best fit for your needs.

In terms of apps or sites, you may want to consider using a portfolio management tool that allows you to track your investments and index token performance. Some popular options include Delta, Blockfolio, and CoinTracking. These tools can help you keep track of your assets and provide you with valuable insights into their performance.

So, it's important to do your own research and find the solution that works best for your specific needs. But yeah, implementing an index token is definitely worth considering if you want to take your fund to the next level.

[kelonmusk]

I'am sorry, I don't have any personal opinions or investments, but I can certainly provide you with some general information and suggestions.

I think, implementing an index token to show your clients the fund's performance is definitely a smart move. It allows for a more transparent and easily accessible way for your clients to track their investments. In my opinion, there are a few ways to go about doing this.

One way is to look into using an existing platform or service that offers index token creation and management. There are several options out there, like TokenSets, Index Coop, and PieDAO. These platforms allow you to create and manage your own index tokens, and some even provide additional features such as rebalancing and automation.

Another option is to build your own index token from scratch. This is a bit more complex and time-consuming, but it gives you more control over the token's design and functionality. You could hire a developer or team to help you with this, or use existing tools such as the Set Protocol or Balancer.

[dansus021]

How to show the token performance when the token itself is not tradeable  Am I missing something?

First, if you want to gain more investor is try to fix your Roadmap, Tokenomic, Whitepaper, utility and so on and basically the project itself.

If this token meaning live on other chain then you can start to add on Decentralized Exchange Like pancakeswap uniswap and dozen more from there you can show the performance of the token