Categories: CryptoNewsSponsored

The Token Fund – Enter the Digital Mutual Fund

Current trends in the digital assets market suggest good times to come for those holding onto cryptos as digital wealth. However, the question still persists: how can traders increase income and profits? Traditional markets may look to a hedge fund or similar service. Few may know that the Crypto market has something similar.

What is The Token Fund?

The Token Fund is akin to a traditional market mutual, index, or hedge fund. What this means is that by having a stake in the Fund, the trader has access to many different investment types and can pad their portfolio conveniently. This portfolio could be conservative, aggressive, or somewhere in between, but the managers of the fund always look to compile the assets in a portfolio in an easy and profitable way.

So this is a digital fund management group that is aiming to bring non-crypto savvy traders and investors into the digital market, while also providing a service to the veterans users and traders of crypto. It wants to help people not miss out on digital asset opportunities because of any knowledge limitations. Their Whitepaper is informative and outlines their goals and methods well.

How does it work?

When a user signs up with The Token Fund, they invest some Bitcoin or Ethereum and put it into the fund. This works the same way that one would invest USD or any other fiat into a mutual fund.

The user then receives shares of the fund itself, in the form of their own tokens (TKN). These tokens represent the user’s stake in the Fund itself. But what does that mean exactly?

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The Token Fund distributes the collective investments made by its users into a collective portfolio that its users all have a stake in, via their TKNs. It is very open about their current distribution of their portfolio, and share it on their homepage. This means that the investments are spread out in a way that aims to maximize gains by leveraging various digital and fiat assets one another. As the value of the portfolio goes up, so too does the worth of their tokens, meaning the investors shares would also appreciate in value. The same is true for if the value of portfolio goes down, however. There will always be risks in investing.

Since the contracts are signed via the Ethereum blockchain technology, investors can also rest easy that their investment and contract of said investment is secure. All funds within the Fund itself are also managed with Multisigs on exchanges and wallets.

The parallels that can be drawn to traditional Mutual Fund investment are vast, and this is by design I would imagine. Since the Token Fund is looking to bring investors who may not be terribly comfortable with the Blockchain as it is, it would make sense to create a digital asset version of a well known traditional investment service so that investors could try to increase income from their assets in a similar way to how they invest in non-digital assets.

Disclaimer: This is a sponsored post and does not necessarily reflect the views of any employees of The Merkle. This is not investment or trading advice.

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The writer of this post is a guest. Opinions in the article are solely of the writer and do not reflect The Merkle's view.

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