A short time ago, @jongolson announced the launch of the Hive Engine Index Token. You can find all the details here. I really like the concept, and there is a few Hive Engine investments that I have missed the boat on so I decided that this was one I wanted to buy in to. So much so, that I sacrificed funds in the form of LEO that I had earmarked for LBI to do it.
Diversifying income streams.
The basic idea of INDEX is that the fund will hold a selection of HE tokens, backing the value of the INDEX token itself in a similar manner to LBI. Whereas SPI and the upcoming LBI are focusing on one asset, and then building diversification within the fund from there, this is starting out from day 1 as diversified. Backing different approaches makes sense, and having taken a look at the assets this fund will hold, I decided to jump in.
My favorite part is that this will pay out a daily dividend, which will be 80% of its daily income. That is pretty cool, and I look forward to another source of income flowing in to my account, growing over time. Some of the assets the fund will hold are not really income producing assets, so I'm not expecting a huge daily dividend, but any passive income is good income in my eye's.
The thing I really like about these types of investments is that as an investor, we can grow and back other people's judgement and skills, and diversify beyond our personal capabilities. In this case, I think you would be hard pressed to find a more passionate person around HIVE than @jongolson, and with @blainjones as his offsider, there is a whole range of HIVE knowledge and skills that I don't have. Backing this project means I can back their skills, and benefit from them. A 10% service fee is a very small price to pay for having some one else build your assets up for you.
Taking a look at the investments.
I like that INDEX has a webpage, set up from day 1. There you can see what tokens the fund will be holding, and the proportion of each.
LEO - an obvious choice, close to 40% allocation. I think from the daily income side, this will contribute the Lion's share (pun intended) of the dividends. We all know the potential of LEO... enough said.
DEC - very close to LEO in allocation. No income stream that I am aware of for this asset, and I'm unsure of its worth as a buy hold investment. I see it as a utility token personally, but as part of an index of the strongest HE tokens it deserves its place at the table.
SIM - 16%. Another utility token, it has had a small income flow added to the mix for hodlers. Limited capital gains chance, with it seemingly determined to hold a solid peg around 0.005 HIVE, but another one that deserves its place.
BLURT - I'm happy this is included, as I sold all my BLURT and this means I'll have a little exposure to any potential upside. 3% allocation, so it's not really going to drive the fund in a big way, but nice to have a little in the mix.
BEE, STEM, BRO, PAL, SPI, ARCHON are the remaining tokens in the fund. Ranging from being tokens I really like, through to some I have little interest in, these make up a small proportion of the fund only and will not make a significant contribution to the dividends.
Overall, it is not hard to see that the dividends will be primarily based on LEO. If the allocations of assets change over time, this could alter, but for now with those proportions, the fund will hold a bunch of tokens and pay mainly LEO dividends. I'm ok with that, but I'd like a slightly higher allocation to alternative income assets.
3000 so far.
So I picked up 3000 of these INDEX tokens, to back the concept and see how it goes. My plan is to monitor it for a while now, and see how the project settles in for the long haul after the initial launch phase. LBI launch coming soon will be a big focus of mine, but adding INDEX to my holdings makes sense. I'll be interested to follow the progress, and congratulate @jongolson and @blainjones on the launch. As always, do your own research, and any opinions expressed are just my personal thoughts and not financial advice.
Cheers,
JK.
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Awesome. I was looking for some coin to buy and now I know which. Thank you.
Damn. 3000 is a pretty big size :D
Holy smokes did not realize you had so much hive and second layer tokens. Congrats on investing in INDEX. I also bought some although on a tiny fraction compare to what you bought. Hopefully I can learn from you and @jongolson on growing these types of investments. Thanks!
Thank you so much for the amazing overview of INDEX and of course, for diving in and supporting this project from the get go!
We're honored to have you onboard man and look forward to delivering day in and day out.
Still a learning phase as we pin-point the top tokens to have in INDEX...But we feel this is a good start for sure.
Please drop either of us a line anytime, we're always around :)
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I think the range you have selected is a good start. It's going to be fun to watch this develop and grow over time. Are you planning a discord or something? I'll be fairly passive with this, just adding another long term hodl.
Slowly adding miners to the mix will build the asset base and income over time - I like that.
Feel free to hit me up if you need anything.
Cheers mate.
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We have been discussing this a little bit in the CTP discord server. https://discord.com/invite/jZCRRZt
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Excellent summary! I’m also excited about Index, and I’m surprised this idea hasn’t been done already.
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Nice post..
So as I can understand this is type of Mutual Fund in crypto...
So this is a little bit like a Unit Trust or Investment trust? I missed the post but I will take a look.
It would be cool if people could develop various managed funds to cover varying levels of risk and across the spectrum from pure capital gain to pure income funds.
Hopefully, the value of the index token can be pegged to the value of the fund and also, wouldn't it be good if they could set up some sort of fixed savings scheme to cover the ups and downs!
Just a few ideas for Mr SPI to consider :-)
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We really need this on Hive. Justin Sun is already pimping things for the bull market. There was 11% gains after today's announcement integrating TRX rewards for Steem users.
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Nice pick-up, I don't want to power down any Leo so I will have to wait a while for this one. I do like it very much though!
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Thank you so much!
Your brief description of some Tribe Tokens is very useful for me and newcomers.
I will try to buy them.
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wow 3000! amazing! simply amazing! it shows you are a firm believer one the project. to tell you the truth as soon as i saw the post and the team i went and bought 71 of these! i strongly believe in the team and that was what made me to buy as i believe the same can apply to you too!
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Will look at it for sure. Next money comes to INDEX probably.
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I am also little surprised with DEC and SIM inclusion but thing is that HE tribes have very low volume. Lets see how it goes.
On side note I am fond of CTP community and Jon so I purchased it with my spare Hive. (not going to sell LEO )
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