Reddit Posts
Index token fail cases? (C20, DPI, NFTI, TCAP)
Mentions
Need help identifying fail cases.... Index token fail cases? (C20, DPI, TCAP) I've been looking into crypto index tokens, tokens that track a weighted portfolio of other crypto assets. For example TCAP tracks the total market cap of all of cryptocurrency. DPI is the Defi pulse index and tracks awaited average of Defi project tokens like SUSHI and AAVE. NFTI tracks projects like MANA and ENJ. This is all led me to wonder if all of these tokens are coated in such a way that they will retain their value relative to the market under any circumstances. Or is there some kind of bank run That could cause them to crash? Or Is there an event that could cause them to de peg? Is a hack possible? What sort of security is in place for guaranteeing the value of these tokens in 5 or 10 years? I am pretty uninitiated in all of the inner workings behind these tokens so I would appreciate any response that does an ELI5 or links to relevant articles or videos. If you believe in cryptocurrency long-term, but don't know which cryptos will come out on top, does the TCAP seem like a safe choice?