Digital currency wallet and exchange, Abra launches new token

Digital currency wallet and exchange, Abra launches new token
Written by:
Invezz Newsdesk
4th October 2018
Updated: 20th December 2019

The exchange and digital asset wallet, Abra has introduced a new token dubbed BIT10 that can track the Bitwise 10 Large Cap Crypto Index, as per an announcement published on October 3.

The Bitwise 10 Large Cap Crypto Index is a program introduced by Bitwise, the asset management firm, and is currently listed on Abra exclusively. The index is meant to keep track of the ten biggest cryptocurrencies by market capitalisation. These represent 80 percent of the total cryptocurrency market capitalisation at the moment.

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Ready to go

According to the announcement, investors are now free to own the BIT10 token through the Abra App by investing at least $5. Hunter Horseley, Bitwise’s CEO, was full of praise for index investing:

Index investing is extremely popular in stocks, bonds, and crypto because it gives investors diversified exposure without having to constantly monitor news and try to predict which assets will be most valuable. So far in the crypto space, index investing has only been available to institutions and accredited investors.

BIT10’s operational principle

The token is tied to an investment fund, which means it is not an ETF (Exchange Traded Fund). It’s clear that it is tied to the top 10 cryptocurrencies by marketcap. Additionally, the tokens are supposedly held in multi-signature smart contracts on the Litecoin (LTC) or Bitcoin (BTC) blockchains. Its operational principle was further explained through the press release:

Once invested, Abra and the user are entering into a smart contract that effectively pegs the asset invested (either fiat currency or cryptocurrency) to the same amount of BIT10 tokens. Abra will get a real-time price feed from Bitwise Asset Management and the BIT10 investor will see the market movement up or down reflected in the price of their BIT10 tokens.

Sale, purchase, and transfer made easy

This development comes hot on the heels of last month’s move by Abra to enable the direct sale and purchase of cryptocurrencies for banks accounts in Europe. As it stands, customers are now able to transfer Euros and most of the other national currencies to their wallets directly and this can in turn be converted into the 28 cryptocurrencies currently supported by Abra.

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