Crypto Price Index (CPI)

What is Crypto Price Index

The Problem

Take for example a high net worth (HNW) individual who manages their own portfolio, but has another full-time occupation. This individual may like to see the average price at a glance of most, if not all, of the crypto assets within the top 200 market cap rankings in order to gain a macro view of the sector as a whole, whilst eliminating the noise generated by tracking tens of different coins.

Instead, having access to an index token which could be tailored to suit an indiviual investors requirements would be advantageous.

Our Solution – The Crypto Index

Our unique solution to this issue comes in the form of the Crypto Price Index (CPI).

We propose the use of our CPIX tokens, built using smart contract technology which allows us to track the value of external crypto assets using wrapped tokens. The ‘X’ in CPIX represents the number of assets which form the underlying investments for that token. For example, ‘CPI200’ could represent the top 200 crypto assets, whereas ‘CPI5’ would be an index of just the top 5 by market capitalization. For the purposes of this whitepaper, we will refer to all indexed coins as CPIX.

Wrapped tokens represent another underlying cryptocurrency asset through a separate token, and make it easier to deploy on the Ethereum network. By creating and leveraging existing wrapped assets, CPIX can manage a basket of crypto assets through one single token.

Our technical architecture uses a two-stage model to mint and deploy CPIX tokens. Firstly, a CPIX Market contract interacts with our CPI Governance Contract, which enables governance oversight by CPI holders via a voting mechanism. The CPI holders can then provide incentives for CPIX participants who stake or validate, and economically punish those who would exploit the system.

To inform the current prices of wrapped assets (underlying crypto assets), our token architecture will use external price oracles as price mediators, who will interact directly with the CPI governance contract.

To comply with pan-European regulation, we are registered and regulatory compliant in Gibraltar, and other associated jurisdictions from our inception.