Utility or Security? CEO of Cryptoindex answers.
CryptoIndex is a tool for exposure to the cryptomarket and serves as a smart benchmark for all cryptocurrencies. The AI-based Cryptoindex algorithm is continuously analyzing more than 2000 coins applying over 200 factors, processing more than 1 million signals per second to provide a highly sophisticated index of the top 100 coins.
Dear Community!
There has been some questions in recent days regarding the status of the CIX100 coin. Whether it is a Security Token or not. First, let me apologize for the delay in responding to this question. I have unfortunately been tied up for the last few days.
I will be stating very clearly that the CIX100 is not a Security Token. It is a Utility Token. We have spent a considerable amount of time and expense ensuring our structure of the company and the operation of the CIX100 does not define it as a Security Token. Having said that, the definition of what is and what is not a Security Token varies around the world, and the purchaser of any token must ensure that they meet the laws and regulations of the country they are in. As we know nearly every token could potentially be classified as a security token in the USA.
Our token is issued out of Malta, where Cryptoindex is based. We have had a very professional had highly qualified legal team work with us to meet the classification as set down in the Maltese Financial Services Authority, Virtual Financial Assets Act (MFSA VFAA). Under this act, the CIX100 is defined as a Virtual Financial Asset. We are classed in that category because the CIX100 will be listed on exchange and for no other reason. A Virtual Financial Asset is not a Security Token.
There has also been some questions as to why we (and a great many other ICOs) do not publish legal opinions. The reason is that the legal opinion is only valid for the country of the issuing legal and firm and where the issuer is incorporated. We would not like people to feel they can rely on that opinion of they are outside that jurisdiction. As I mentioned earlier, each individual must check their local laws and regulations to make sure they are complaint with those.
Finally, there was a statement that Cryptoindex offers a buyback facility of some sort. We do not. We have partnered with a fund (currently going through MFSA approvals) who as part of its Crypto investment strategy, has agreed to allow our ICO participants to offer their tokens for sale to the fund who will purchase them at the then index price, subject to their investment criteria.
The potential to sell your token at the index price is with a third party, not Cryptoindex.
We will publish the Executive Summary and definition of a Virtual Financial Asset below. The VFA both of these publications are purely Maltese Law and cannot be relied upon in any other jurisdiction.
I hope this clears up any misunderstandings. Please feel free to ask any questions you like.
Kind Regards,
VJ Angelo
The AI-based CryptoIndex algorithm is constantly learning by consuming huge amounts of data rapidly making decisions and choices that humans would struggle to match.
You can always check the current CIX100 composition on our MVP platform:http://cryptoindex.ai/
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