The Uridanus
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The Uridanus

Imagine scooping up the top 25 cryptocurrencies with one click!

LyCI is a tool that investors can use to consolidate and track the performance and value of a selection of underlying top 25 cryptocurrencies.

2018 was a great year for cryptocurrencies and blockchain as many groundbreaking projects and ICOs were launched in the year and also in the first half of the year holders of the digital assets recorded huge gains from their portfolios. However, it is also in the public domain that there was also a landslide of crypto prices and up to this date many investors are still counting their losses.

The collapse of cryptocurrencies as well as the emergence of scam ICOs that took investors’ money and ran exposed problems within the sector, problems mainly to do with compliance and regulation.

Without control, the crypto space proved to be prone to scams and pump and dump evil schemes. This, in turn, has acted as a barrier to widespread adoption of cryptocurrency and blockchain as a legitimate piece of financial tech that can rival traditional monetary channels.

However, 2019 has seen issues to do with regulation and compliance coming to the fore and transformation of cryptocurrency markets is imminent. One such project that is striving for this is LyCI. LyCI (pronounced “Lucy”) which is an acronym for Lykke Crypto Index, is a crypto ERC20 token has become part of this process of transforming the landscape to bring sanity and order. The LyCI platform works with regulators all over the world to introduce digital assets and operate trading infrastructure that will be fully compliant with securities markets laws and regulatory standards. Launched by Swiss-based exchange Lykke in late 2018, LyCI is a tool that investors can use to consolidate and track the performance and value of a selection of underlying top 25 cryptocurrencies.

An example of a selection of top 25 cryptocurrencies that is weighed into a single LyCI Index

What LyCI is trying to achieve and what has been lacking in the past of crypto is a regulated blockchain based market infrastructure that enables institutional access and brings long-term patient liquidity to the crypto economy, improving price discovery and decreasing volatility, this effectively creates a bridge between what was the cryptocurrency market and what can become of the same market.

The LyCI token allows customers to purchase the top 25 cryptocurrencies tracked by the LyCI Index in one click. With the LyCI Lykke has effectively introduced an index tracking instrument that represents a market-cap-weighted basket of the top-25 crypto assets, re-balanced minute-by-minute.
With LyCI each digital asset contained in the index depends on its total market capitalization thereby bringing in a weighted average aspect to the token. LyCI deals with the current mid-market prices of the 25 cryptocurrencies with the largest market capitalization — those that are worth the most in terms of total asset value.

LyCI is an instrument that brings together and tracks the performance of a selection of underlying cryptocurrencies thus providing a snapshot of how this basket of the cryptocurrencies performs overall in a single, easily understandable manner. By using this instrument, it is easy to determine that even if one digital asset in the market goes up or down dramatically, the index will reflect the global performance of all the assets therein. This will give a more accurate picture of the overall market performance excluding idiosyncratic risks of single assets.

Given the above-discussed features, there are 3 very distinct merits that investors can benefit from when they invest in LyCI as opposed to trying to balance the difficult task of buying, selling and tracking a wide portfolio of individual, different tokens and coins.

For starters, LyCI reduces risk of loss due to a bearish market as it spreads the investment across a diversified portfolio of the top 25 cryptocurrencies in the market.

Secondly, the investor saves time and money usually spent on doing research on the performance of various coins and tokens which in most cases are listed in different exchanges with different volumes of trades and capitalization. This LyCI also appeals to the inexperienced trader as well as it makes the process of investing in cryptocurrencies easier, not an act that is preserved for some geniuses who can read candlesticks and graphs.

And lastly but not least LyCI cuts out the cost of having to address spreads across several transactions as it only crosses those transactions related to the single index.

The following article is written from an independent perspective as an entry into Lykke’s LyCI’s writing competition. The above does not constitute financial advice and independent financial advice should be sought before deciding whether to invest in any financial product.

Tendai Tomu

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