Index funds are a mixed blessing for the stock market. Because of the way they are structured, there are a lot of zombie companies that receive buy support since the Index Funds keep buying them.
In this video I discuss how funds are already showing up as a great help to crypto. I also cover the INDEX fund on Hive-Engine and how it will help some of the tokens on there.
▶️ 3Speak
The only definition of an index for me was just the index from the books lol until a few weeks ago!
Thank you so much for the explanation!
INDEX to the Moon!
Nice analysis on the impact of zombie companies and funds in general. I do agree the liquidity on tokens are pretty bad on most HIVE tokens (sometimes greater than 10%) and if we want to become a good trading platform, this needs to be fixed.
it would be nice if a ARK type ETF fund on HIVE. If I remember correctly, they research and purchase underpriced stocks that had according to their estimates can double. If it drops, they get more of the stock. If it goes up too much, then they dump some it.
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Ark is very good.
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ARK is very interesting. They have a different approach, focusing upon disruption. They have 5 areas of focus: DNA sequencing, robotics, energy storage, blockchain, and AI.
They look at things holistically. Like Tesla is one of their biggest holdings but they look at that as part of the energy storage crazy.
They are a really interesting firm and much different from typical Wall Street analysis.
If we can get synthetic assets on Leo, we then will be able to set up our own funds in a manner like that.
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Interesting as this was not something I knew. Personally I would rather hold the coins I chose myself than having a general purpose or index coin covering many in their portfolio. There are a few interesting tokens around now that have decent prospects that should do well financially.
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I bought into INDEX because it is impossible to follow every token project on here. They have a model which they opt for specific tokens based upon different criteria they set up.
When it comes to stocks though, I actively choose what I get involved in.
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Summed it up perfectly!
And here's our good buddy @khaleelkazi on the LeoFinance twitter account today, HAMMERING this point as well...
Ever. Single. Person. Wins!
That's our goal with INDEX :)
Yep he is doing his best to get things going in the right direction.
A couple more updates from a few of the teams and we might be ready for an explosion in Hive.
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The way I view index funds is as "useful" in the sense in that it's not necessarily the highest and best use of my time to become an investment expert, so I can do my own informed investing with some degree of wisdom. I think they serve those who are very busy and just know "I should be in the stock market."
Back when I did do some stock market investing, my personal choices were "sector index funds." For a while, I held technology and Biotech index funds... and that went pretty well, as those sectors outperformed the S&P pretty handily.
As for the cryptosphere? I lack the nerve to venture too far afield because I can't bridge the chasm between a project that appears to me to have little more than "vaporware" to offer, and the fact that the market just doesn't care" and will chase that to the Moon, while projects with solid use cases stagnate. And so, crypto index funds almost feel like a hedge to me.
Nice point about the "layering of value." Sort of reminds me of the "velocity of money" theory from college daze! $1 is sometimes much more than "$1."
=^..^=
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Depending upon how long ago you were in college this is not looking like the case anymore. With the velocity of money dropping like a rock, it is now $1 is $1.
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I follow this index of the top 200, I'm going to jump in after we get a better correction.
https://finance.yahoo.com/quote/%5ECMC200?p=%5ECMC200
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Pump those INDEX tokens
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Sadly cant pump an Index fund.
Need to pump everything else.
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There are some interesting hedge and Index tokens popping up on crypto across the board. Just gotta find the gems amongst the stones. Here's an appropriate song for your video as well:
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@taskmaster4450, One thing i agree with you and that is we don't know what is going on in cryptocurrency space, hopefully more clarity will arrive in near future. Stay blessed.
Summary:
In this video, the speaker discusses the role of index funds in both traditional markets and the cryptocurrency industry. He highlights the drawbacks of index funds in the stock market due to their support of "zombie companies," which can negatively impact the overall economy. Conversely, in the cryptocurrency world, index funds can offer significant benefits by providing exposure to a diverse range of tokens, especially for those who may not have the time or knowledge to research individual projects. The speaker also mentions specific projects like Grayscale in the crypto space and dives into the concept of index funds on the Hive blockchain, such as the I-D-E-X index and Singularity Net's DeFi platform. Overall, the discussion emphasizes the potential of index funds to drive growth and value in the cryptocurrency sector.
Detailed Article:
The video delves into the key differences between index funds in traditional markets and their role in the cryptocurrency space. The speaker starts by explaining the concept of index funds as a popular investment vehicle in stock markets, emphasizing their passive nature and market-wide exposure. He points out that index funds, while suitable for lazy investors, can be detrimental in a market filled with "zombie companies" - entities with debt servicing costs exceeding their profits, kept afloat by easy credit and index fund investments.
The discussion then shifts to the cryptocurrency industry, where the speaker notes the speculative nature of projects beyond Bitcoin and Ethereum. He highlights the significance of index funds like Grayscale in providing access to various tokens for investors who may find the crypto market overwhelming. By investing in diversified funds, individuals can benefit from exposure to a range of tokens without extensive research or technical know-how.
The speaker introduces the concept of index funds on the Hive blockchain, such as the I-D-E-X index, which buys Hive Engine tokens based on a weighted algorithm. He emphasizes how these index funds can create buying pressure for projects within the fund and contribute to the liquidity and growth of different tokens. Furthermore, he mentions Singularity Net's DeFi platform, designed to invest in lower-tier tokens to enhance liquidity and market presence.
The video concludes with a discussion on the broader impact of index funds on Hive projects like BroFund and SP Invest, which distribute tokens to holders, thereby increasing token circulation and value. The speaker emphasizes the interconnected nature of index funds within the ecosystem, where the success of one project can positively impact others through shared token holdings. This interconnectivity facilitates exponential financial growth and value creation across different token layers within the Hive blockchain.
In summary, the video provides insights into the role of index funds in traditional markets and the cryptocurrency industry, highlighting their potential to drive growth, liquidity, and value in both sectors. The speaker's analysis underscores the benefits of diversified index funds in the crypto space, especially within projects on platforms like Hive, where interconnected token holdings can amplify financial gains and ecosystem growth.