About Cryptex (CTX)

CTX is the native governance token of Cryptex Finance, an Ethereum-based project than enables users to gain full exposure to the entire cryptocurrency market through a synthetic asset called TCAP. Within the Cryptex ecosystem, CTX allows holders to vote on proposed changes to the protocol. CTX is also provided as a reward to users who mint new TCAP tokens. 

At any given time, TCAP’s price represents the total market capitalization of all crypto assets – divided by 10 billion. In other words, if the current market capitalization of all digital assets is $500 billion, TCAP will be valued at $50. According to the project’s whitepaper, Cryptex leverages a suite of Chainlink-powered oracles that actively scour leading data providers like CoinGeckoin order to update TCAP’s price on-chain in a fast and efficient manner.

TCAP is backed by two, ERC-20 assets, ETH and DAI which are deposited into a series of Ethereum-based smart contracts referred to as Vaults. As TCAP is overcollateralized, these deposits must be at least 200% of the token’s current value. Should the value of this collateral drop below a sufficient level, the vault can be subject to liquidation. Per documentation, TCAP tokens can be redeemed for the underlying collateral at any time. Those who choose to discard of their tokens are charged a burn fee by the protocol for doing so.

Once in circulation, TCAP tokens can be stored, traded or used to fund a range of Uniswap based liquidity pools. Those who deposit TCAP into a protocol-supported pool earn TCAP LP tokens which can be staked on Cryptex for CTX-based rewards.

Cyrptex is currently managed as a decentralized autonomous organization (DAO) governed by CTX holders. Within this framework, CTX holders can vote directly on proposed changes to the protocol of delegate their stake to a representative who casts votes on their behalf.

When was CTX created and how much was it worth?

Cryptex was created in April of 2021. It has a trio co-founders. They are Joe Sticco, Preston Von Loom and Thomas Matzner.

Sticco currently serves as Cryptex’s CEO. He’s a self-described trader and investment manager. Technical developments are led by Von Loom, a blockchain developer associated with the building of layer-1 scaling solutions for Ethereum. Matzner, described as an experienced product builder, holds the title of “brand lead.”

The platform’s native governance token, CTX, was first distributed in April of 2021. No sale was held. Instead, tokens were allocated directly to various platform stakeholders. These include Cryptex’s founders, early adaptors and liquidity providers.

Data from CoinGecko shows that CTX began trading at about $10 but then lost roughly 70% of its value within a couple of months. Following a period of sideways price movements between July and August of 2021, CTX went parabolic in September 0f 2021. That’s when CTX hit an all-time high of $44.13. The token’s price has since fallen amidst a general risk-off period and a severe downturn for crypto. As of August 2022, CTX was roughly $4.25.

How is the price of CTX determined?

A deflationary asset, CTX has a hard cap of 10 million tokens, of which 3.35 million are currently in circulation. According to Cryptex’s whitepaper, roughly 59.5% of CTX’s total supply was allocated to the project’s treasury, and another 25% earmarked for initial protocol incentives. Some 15% of supply was distributed to Cryptex’s founders, while the remaining 50,000 tokens (0.5%) were granted to various platform advisors.

Why does CTX have value?

Cryptex’s native synthetic asset, TCAP, provides exposure to the entire digital currency market, while reducing the risk/complexities associated with holding each asset individually. By leveraging the law of averages and diversification, TCAP offers some stability in a marketplace dominated by volatility.

Is CTX secure?

A standard ERC-20 asset, CTX is supported by a series of leading Ethereum wallets and exchange-based storage solutions. Likewise, CTX’s sister asset, TCAP, has been subject to a series of extensive audits by leading smart contract security firm Quantstamp.

What are the main benefits of CTX?

•  It allows holders to vote on proposed changes to the Cryptex protocol.
•  Cryptex supports a second native asset, TCAP, which provides exposure to the entire crypto market.
•  Users can earn CTX-based rewards by minting new TCAP tokens or staking TCAP Liquidity Pool tokens to the protocol.

What do critics say about CTX?

That TCAP and Cryptex are facing stiff competition from established protocols, such as Synthetix.