AlgoBasket is a project that is trying to provide a sort of Investment Fund for Algorand tokens.
Algorand is a smart contract blockchain that is very fast and almost fee-less. Near the end of last year the ecosystem of Algorand started to explode with growth. There are now decentralized exchanges, lending protocols, NFTs and much more. There is by far no shortage of interesting projects that are being built on Algorand. In fact there could be too many opportunities and it could be difficult for the average investor to pick the right tokens. That’s why AlgoBasket was founded.
It is a project that will not only educate the Algorand users about new dApps on their website but also create finished portfolios that anyone can invest in. There will be a portfolio for "core" assets on Algorand, one that has a focus on NFTs and one that is investing in new projects and start-ups. All of those portfolios will be funded by the sale of ABSKT tokens and token holders own a share of the investments. This means that you could buy ABSKT as a diverse investment in Algorand tokens instead of picking and buying them all by yourself.
AlgoBasket only recently had its IDO and distributed their ABSKT tokens to raise funds. They are currently building the portfolios and soon there will be staking pools that let ABSKT holders earn more rewards. By the end of the year there will be a governance platform that will give the token holders more power. However, the project is currently very centralized because the team behind it has to pick the tokens they want to add to the portfolios.
This basket investment could be a simple alternative for everyone who is bullish on the broader Algorand ecosystem but unable or unwilling to do all the work by themselves. By diversifying you are making less profit than by buying only the winners but you are generally safer.
The ABSKT Token
ABSKT is the tokenized share of the AlgoBasket portfolios. It is backed by the value of the portfolios and in theory its market cap could not fall below the portfolio value at least for a long period of time. It will also eventually be used as governance token and will enable its holders to vote on changes to the investments.
There is a total max supply of 10 billion but a part of all raised funds are used to buy back and burn ABSKT until only 2 billion are left which is believed to happen within 2022. 15% of all tokens are going to the founders, 20% were sold to investors at the launch of the token, 10% were put aside for staking rewards that will be available later this year, 5% are used to reward the community with airdrops and for a possible Yieldly launch pool, 10% are used for liquidity on exchanges, 30% are used for ongoing token sales and 10% are used for exchanges listings and marketing.
Of all revenue that is generated by selling the token and possible by staking rewards of the assets in the portfolio 60% will be used to fund the portfolios, 20% will be used to buy back and burn ABSKT, 15% is going to the founders and the team behind AlgoBasket and 5% will be used for further marketing and the like. Once the total supply has been successfully decreased to 2 billion, the 20% used for burns will instead also be used to fund the portfolios.
The ABSKT token makes it easy to diversify across the entire Algorand ecosystem and the strong deflation could even make it outperform most individual investments in Algorand tokens. However, only 60%, and later 80%, of all collected funds are used to fund the investment pool, so if you would put in the effort of copying the basket, you could build your own portfolio that utilizes all of your supplied funds. Still it’s much more convenient to invest in ABSKT instead, but you could argue that investing in ALGO coins is also a simple investment in the Algorand system. The project is early and the portfolios are not even finished yet, but if you invest now you could profit the most from future distributions of the ABSKT token and from the strong deflation, both of which will be over by the end of 2022.
AlgoBasket is currently not supported by any centralized exchanges. If you want to buy ABSKT tokens you can do that on the Tinyman DEX but you will need ALGO coins for that. The best wallet that you can use to store ABSKT and interact with the DEX is the My Algo Wallet
Binance, 10% discount on fees
MEXC, 10% discount on fees
Presearch, 25 PRE start bonus, earn cryptocurrency for searching the web
Learn more about the LEDGER hardware wallet
