ICONOMI is developing the first ever Digital Asset Management Platform for blockchains and cryptocurrencies. As part of this we are creating Digital Asset Arrays (DAA) that can be managed from our platform. ICNX is an index-based passive DAA which invests in tokens that meet the ICONOMI eligibility criteria. The tokens currently included represent 70% of the total market capitalisation of cryptocurrencies.

It is important to adapt to the fast changing nature of the markets and as such we have updated the set of ICNX managing rules.

Eligibility criteria for token inclusion

The token’s underlying concept must be based on blockchain technology and seen as viable in the long term by ICONOMI. We look at the following: Token functionality, Stage and quality of product being developed, User adoption potential and growth, Capability of team, Competition

The token must be released and it must have been trading on Poloniex or Bittrex for at least 1 week (additional exchanges such as Kraken are coming soon)

Average daily volume of particular token in the past 7 days on exchanges must be at least double of the invested value in the portfolio.

The invested amount of particular token shouldn’t exceed 5% of its market capitalization.

There is no cap on the number of tokens in ICNX.

Circulating supply of particular token should be at least 60% of total supply, unless tokens not in circulation are issued in new funding campaigns.

Annual inflation rate of particular token shouldn’t exceed 20%, unless actual user base growth of token is high.

Structure methodology

The ICNX Index structure is based on a nominal value of a particular token’s market capitalization, where additional adjustments are made due to the high concentration of the top few tokens on the market. Index rebalancing is performed at the end of each month, or more frequently if ICONOMI deems it necessary.

Maximum weight of any token at rebalancing is 15%

Tokens that have a proportionally higher market cap have their weight based on a logarithm of market cap value*

ICNX pursues a structure that delivers diversification benefits and minimises risk.

During rebalancing periods the structure of ICNX may move from the defined criteria temporarily.

Rebalancing may be triggered during regular rebalancing periods if weight of certain tokens surpass 25% of ICNX.

*Log has to be taken in order to get a more fragmented structure of index. Log is applied only for those currencies which would otherwise have too large a weight (i.e. Bitcoin and Ethereum having combined weight of 70%).

ICNX index inception date was 23/12/2016. The ICNX price and structure is published and updated in real time.

ICNX currently has $2.5 million USD assets under management. We have added all the beta testers and plan to add every original ICO participant by the end of June 2017.