The IOC funds will be used to buy the underlying assets. Tokens can be liquidated through the C20 smart contract for their share of the portfolio's net asset value(NAV). This is key: it protects the token price as it would not be rational to sell at a lower value on exchange when tokens can be directly liquidated for a higher value.
The only opportunity to purchase these tokens post-ICO will be on exchange from ICO participants - highlighting the real demand for reduced risk crypto investments whilst simultaneously creating value for participants.
The structure of CRYPTO20 is analogous to a new hybrid-type; a closed-hybrid fund(CHF).
By holding a basket of coins we hope to capture this mean return - we expect to see a few coins that underperform and a few that overperform, the sum of the returns should provide the mean or market/index return.
The smart contract compiles with the ERC20 token standard and can be used from any compatible Ethereum wallet.
Participants can send ether to the contrast directly or via the buy or buyTo functions. The ether purchase amount is used to calculate the tokens bought which are then added to the balance of the participant anount.