Updated: Dec 21, 2019
Iconomi is a decentralized digital asset management platform, which allows users with a variety of technical backgrounds and proficiency to invest in digital funds and portfolios. The platform is designed to appeal to experts and also inexperienced investors. Iconomi also offers a range of investment tools suited to everyone's needs. ICN was the platform’s token allowing holders to could collect fees in ICN from profitable DAAs. However, in December 2018, ICN tokens were phased out for eICN, which is an equity token. ICN is exchangeable for eICN.
This guide will explain what Iconomi is designed for, the team behind it, the way it works, and various uses and applications.
What Is Iconomi Designed For?
Iconomi was designed to help users invest in digital assets. It was the first platform to offer essentially customizable cryptocurrency index funds and Digital Asset Arrays (DAAs). The platform is aimed at giving its users freedom, which allows them to invest in cryptocurrencies as per their individual investment goals.
Iconomi ensures that users can do this without the added hassle of having to research each cryptocurrency. The struggle of doing a background check is left to the Iconomi team.
Who Is the Team Behind Iconomi?
Iconomi is co-founded by Tim Zagar, who is also the CEO and Jani Valjavec. Both Zagar and Valjavec have previous experience with Cashila, a Prague-based Bitcoin payment gateway. Valjavec is also a founding member of Columbus Capital Ltd. The project’s CTO is Miha Vidmar, who was previously the director of development at Halcom and has more than 15 years of experience in software development.
Iconomi’s COO, Matej Tomazin, is known for his extensive experience in business operations and management, both as a broker and a CEO. Though the platform started with only 4 core team members, it has expanded to about 27 seasoned professionals.
How Does Iconomi Work?
Iconomi works by offering its users multiple classes of investment vehicles (low, moderate and high-risk) with a high degree of liquidity in the form of Digital Asset Arrays (DAAs). These DAAs are a portfolio of various cryptocurrencies. They include a variety of options to choose from by diversifying a particular investment in such a way that the overall risk is decreased while maximizing potential gains.
There are about 11 DAAs on offer from Iconomi and each of these has a management fee ranging from 1 to 5 %. An investor only has to choose a DAA and the rest will be taken care of by the particular Iconomi DAA Manager. Investors do not have to worry about buying cryptocurrencies from different exchanges or securing them, as Iconomi takes care of all this.
ICN tokens were made available on almost 15 exchanges including Binance, Yobit, Tidex, and Idex. However, ICN tokens were phased out for eICN. Being an Ethereum token, eICN can be stored on various compatible wallets. Hardware wallets are always considered the safest to use. Ledger Nano S and Trezor are considered excellent options for tokens on the Ethereum blockchain.
What are Current and Future Applications of Iconomi?
ICN is an ERC20 token that used to give users the power to vote on changes and developments in the platform and also acted as a mode of value on the platform. However, ICN has now been phased out completely by ETH and eICN and lost its utility as of December 1, 2018.
eICN represents a tokenized share in ICONOMI AG, the joint-stock company. It allows holders to participate in the governance of the project in a role analogous to shareholders in a joint-stock company. Equitable shareholder rights include but are not limited to voting and participation in company net profits.
The exact governance rights and structure of eICN is not yet finalized. However, it is expected that shareholder rights will be based on Liechtenstein’s corporate laws. They will also include rights for electing and discharging members of the board of directors, approving annual reports, amending the company Statute, and dissolving or liquidating Iconomi as a company.
Iconomi is not just a currency users want to invest in. It is so much more. While the platform calls itself decentralized, it is not exactly that. A cryptocurrency investment manager in the form of a DAA manager was (and still is) the need of the hour. There are multiple digital currencies listed on the platform, and with each one coming up at a speed that’s hard to keep up with, having a dedicated investment manager is not such a bad thing after all.
Iconomi also has various projects in the works, among which one is to allow investors to use fiat currencies as deposit medium on the platform, in addition to its digital currencies. The future looks strong for this platform with an increasing number of crypto enthusiasts and beginners foraying into the investment space.