Crypto Market Meltdown — A case study on how to eliminate exposure while preserving portfolio diversification.

Abstract

Undoubtedly, we are undergoing some bearish times regarding market trend and this is a cold fact. There are many factors for which is currently happening, but should an investor focus on the very reasons that triggered this market collapse? Or instead, pay attention to how he could keep his portfolio balanced and safeguarded from volatile times.

Every major traditional market is undergoing the same volatility in the past weeks, and the crypto market could not differ. This is due to the fact that all markets are somehow connected to each other. They are all fueled and backed by traditional fiat monetary systems. In simple terms, only fiat currencies are yet perceived as tangible assets by every investor, regardless volumes of a portfolio.

Considering the above mentioned facts, one who is eager to enter the crypto market or is already inside the DLT ecosystem must make sure he is protected enough from bearish traditional markets which have an impact in the cryptoverse as well. On the other hand, one must always ensure that he will not get emotional during volatile times, and act against his long-term financial targets, or let’s say digital financial goals with his crypto asset-backed portfolio.

Chapter 1

How do we ensure the objective course towards one’s digital wealth financial plans during uncertain times?

MPCX has proactively designed and currently developing 2 unique products, which aim at solving all the aforementioned issues. Our team had a single target. How to apply Smart contracts in traditional financial markets. Digital Smart Investment Mandate (DSIM), a smart contract driven, AI roboadvisory protocol, is inevitable, the tool that majority of crypto investors (Institutional or Individual ones), will be likely to use once MPCX beta Platform version will be released.

DSIM processes all of the client’s information and creates an appropriate digital financial plan in the context with them. It is not only a strategic guide to digital wealth planning, but also offering a crypto rebalancing portfolio model, plus crypto lending strategies, based on the following parameters:

Please note that the client will always be available to choose on whether his portfolio will be automated or manually under any adjustments. The main philosophy of DSIM is to help MPCX’s client to objectively following his digital financial goals, even during uncertain and disruptive market periods.

Chapter 2

How can an efficient crypto-asset backed portfolio be created to increase diversification?

Everyone has definitely heard of Crypto ETFs so far, either from our latest articles or on mainstream media. The main question is whether or not one can comprehend how to structure an optimal digital crypto investable portfolio, which will ensure enough diversification, efficiency, ROI and most importantly being compliant with the existing legal framework.

MPCX introduces Crypto Investable Indices as a solution to the above “headaches”. First of all, let’s take a thorough look at what indices actually are. In simple terms, indexes are allocations among a number of assets. They increase diversification, allocation efficiency and your digital portfolio return. The philosophy behind these unique products is to increase flexibility for our clients and help them to operate with confidence in this wild crypto market.

So far, in our ecosystem, there exist over 1 500 cryptocurrencies already. Building 3 Crypto Investable Indices (CII), is an outcome of our team’s experience, which is based on tracking all the necessary parameters among cryptocurrency activities. Thorough conduct research was applied in crypto portfolio returns and sharp ratios since 2015, before ending up with our final product infrastructure.

Let’s take a closer look at CLT, M20T and SBCI.

• Large Cap Index, which holds the top 10 cryptocurrencies by market capitalisation, with a maximum weight of 20% per coin, in order to maintain the necessary portfolio diversification. The constituents are recalculated on an optimised basis.
• Mid 20 Cap Index holds the next 20 cryptocurrencies by market capitalisation, with a maximum weight factor of 10% per coin, to ensure sufficient diversification. The index weights are adjusted on an optimised basis as well, to ensure the proper portfolio returns.
• Smart Beta Factor Exposure Index consists of 200 different cryptocurrencies with a maximum allocation of 5% per coin. The index weights and constituents are recalculated and adjusted on an optimised basis, triggered by an AI algorithm.

Our unique smart contract driven products will increase efficiency and reduce operational costs among intermediaries. Once a smart contract receives the subscription order, it awaits for the client’s verification. Assuming that KYC&AML procedures were successful, our smart contracts start executing the order according to code, until it is completely settled. Τhe whole procedure lasts no more than 1 hour, compared to traditional mutual funds who could take up to 3 days.

In conclusion, our own objective goal is to build tomorrow’s digital wealth management platform for crypto assets, today! This is what MPCX stands for.

Visit our website https://mpcx.co or simply join us on our social media channels: Facebook, Twitter, Medium, Instagram, YouTube, Telegram and, LinkedIn.

Stay Tuned!
Your MPCX team!❤