The market capitalisation of the crypto economy has shrunk dramatically, by some estimates collapsing from a USD820 billion high to the current USD130 billion. But what does it mean? Obviously this isn't the end of the whole crypto-currency experiment, but has blockchain snapped under the weight of its own hyperbole?
We'd argue not. In fact we'd argue very strenuously that this is just the start of a new chapter. Keeping it simple, here are three reasons why we believe that the crypto space is likely to rise over the next couple of years.
1) The hype bubble has spectacularly burst
As has been discussed widely, the rise of crypto-currency between 2016 and 2018 had all of the characteristics of an economic bubble, but like most bubbles, the underlying potential of the technology is not really in any doubt.
In the past there have been bubbles in gold, in tulips and in dot com companies. Once those bubbles burst, there were still markets for gold, for tulips and rising technology companies, and the same it likely to be true for the crypto sector.
2) The technology is starting to mature
As crypto matures we are gaining a better understanding of what it is possible and what needed to ensure it is stable, secure and viable. One example of this is the development of Masternodes, which provide the secure validation that blockchains require. Masternodes create a viable alternative to the network of proof-of-work miners that have validated blockchain information up to now, offering more consistent and reliable service.
Masternodes are significantly cheaper to run than individual nodes and require far less power, making them significantly more environmentally friendly. They also provide additional functions to the network, such as instant send, anonymous send and network governance.
3) The sector itself is starting become more professional
During its earliest days, the crypto sector was run exceptionally successfully by enthusiastic innovators with little interest from regulators. While this enabled it to leap forward without interference, it also unfortunately made it very attractive for fraudsters who could turn a fast buck and disappear into the night without fear of consequence.
Again, Masternodes suggest that the sector is on its way to a level of maturity that should make this sort of behaviour more difficult. For example, the environment requires the Masternode owner takes a stake in a network's native currency, which means that they have an interest in protecting its value to maintain their returns.
Where does INDX fit in?
INDX has looked at the maturing dynamics of the crypto infrastructure and identified a way for investors to enjoy consistent, stable returns from investing in a portfolio of Masternodes.
There are three elements to what we have developed.
Primarily, the INDX Algorithm scans the universe of investable Masternodes and selects a risk-managed outperformance portfolio which is reviewed and managed by our expert investment committee. The INDX Platform then hosts the Masternodes, secures the wallets and collects the rewards. Simultaneously, the INDX Hedge protects the collateralized stakes against the risk of a market crash. All that investors need to do is buy an INDX Token and they will receive quarterly dividends directly into their wallet.
By offering access to professionally selected aspects of the fast-growing masternode sector as part of a flexible, comprehensive digital investment strategy, INDX will reduce uncertainty and risk for investors, and support a technology that reduces both wasted time and energy consumption.
The crypto-sector has endured a long and difficult winter, but we believe that Masternodes signal a significant enhancement in functionality and stability, as well as creating a superb opportunity for investment. We want to ensure that everyone can enjoy the benefits of the digital economy and that the blockchain has the capacity to grow and fulfil its potential.
INDX is making it simple to invest in the masternode sector. We want to ensure that everyone can benefit from the digital economy by reducing uncertainty, risk, energy consumption and wasted time.