Alongside Launches V2 to Bring Decentralization to Crypto Investing
A startup called Alongside, backed by a16z and known for providing cryptocurrency investors with exposure to a basket of the top 15 cryptocurrencies through a single token, has announced the launch of its V2. This new version will fully migrate the product onto the blockchain, offering a more decentralized approach to investing in a wide range of tokens.
Co-founder Austin Diamond describes Alongside as “what Vanguard would be like if it were decentralized.” Despite having raised just $11 million from investors including Coinbase and Franklin Templeton, the company is confident that its V2 release will attract cryptocurrency investors seeking a decentralized index fund option.
A New Approach to Index Funds
V2 of Alongside’s AMKT will allow traders to acquire the top 15 cryptocurrency assets while reducing centralization found in traditional fund structures. Typically, ETFs involve multiple participants handling various aspects and charging their own fees. Alongside aims to leverage the strengths of crypto by removing intermediaries and offering a better, faster, cheaper, and globally available index product.
The previous version of the token relied on Coinbase as the custodian, but V2 moves custody entirely on-chain. However, the methodology of the fund is still being worked on in terms of decentralization. Holder governance is involved in executing decisions via a multisig system.
Implications for U.S. Market Participants
As U.S. market participants eagerly await a bitcoin spot ETF, they can now add AMKT to the list of assets that the Securities and Exchange Commission (SEC) is “protecting” them against. Interestingly, the first ETF was launched in Canada because the SEC took three years to act on the idea despite it being their own concept following the flash crash of 1987.
Overall, Alongside’s V2 launch represents a step towards decentralization in the world of cryptocurrency investing, offering traders a new option for acquiring and managing a diversified portfolio of digital assets.
Hot Take: Alongside’s V2 Launch Marks a Milestone in Decentralized Crypto Investing
The launch of Alongside’s V2 is an important development in the realm of decentralized cryptocurrency investing. By migrating their product onto the blockchain, Alongside is providing investors with a more decentralized approach to index fund investing. This move aligns with the core principles of cryptocurrency by removing intermediaries and offering a faster, cheaper, and globally accessible investment option. While challenges remain in fully decentralizing the methodology of the fund, Alongside’s commitment to holder governance and its use of multisig systems demonstrate its dedication to creating a more democratic investment landscape. As the demand for decentralized investment solutions continues to grow, Alongside’s V2 release positions them as a key player in the evolving crypto market.
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