Ok, do you have a whitepaper or any kind of explanation on how you plan to peg the coin to the volatility index without a liquid derivatives market in all of the top 20 coins? The tracking error is going to be off the charts.
We are not going to need liquidity on top 20 coins, it will take the trading data gathered from them and a bot will perform automatic trades in our coin, the liquidity for that is ipo, and if it does not get sold in the majority of it, the future users will be able to use it as well.
Ok, do you have a paper on this? How long do you expect the fund to be liquid enough to maintain a low tracking error? How well will you be able to track at extreme volatility levels, which in crypto, may be often. Won't transactions costs slowly dry up your fund? You may get it to track temporarily, but long-term is another story. I'm just asking questions.
The time we expect for this is around 2 months, at extreme volatility levels supposing for example that bitcoin goes to 2,000 usd we expect a high speculation on our coin raising the VLT price and this cannot be stopped easily but in the other side it will send the coin to higher levels than expected, we expect to get more funds from our own coin, once listed it will keep raising in price while we deliver features, so we are going to buy our coin like everybody else.
Btw we are now just waiting for Coinsource response to finish the POD.
