That's a very good question Mostar !

SmartCoins in the BitShares ecosystem, Bit20 for example,  always have 100% or more of their value backed by the BitShares core currency, BTS, to which they can be converted at any time at an exchange rate set by a trustworthy price feed. In all but the most extreme market conditions, SmartCoins are guaranteed to be worth at least their face value (and perhaps more, in some circumstances). Like any other cryptocurrency, SmartCoins are fungible, divisible, and free from any restrictions.

You'll find the whole explanation in this page of the website BitShares.org that explain how the BitUSD and other smartcoin collateral works. In the case of BitUSD the value is pegged to the dollar, in the case of Bit20 the value is directly created by the witnesses. The collateral system that guarantees your asset is exactly the same.

Have a look, you 'll find it completely reassuring: https://bitshares.org/technology/price-stable-cryptocurrencies/

while there are some huge exchanges around, another exchanges alike but i can say "exclusive" for Bittwenty has been created, i wish you have a very good plan to execute to be able to compete with the reigning sites.

already closed?

I'm not sure to fully understand your question. The only place where Bit20 is beeing traded at the moment is on the BitShares Decentralised Exchange and other exchanges using the underlying platform such as Open Ledger or Freedom Ledger.

Bit20 is unique and I don't need to compete with anyone at the moment.

Could you tell me which are these "exchanges alike but i can say "exclusive" for Bittwenty has been created" ?

I have initially opened this thread in the announcement altcoin but it seems that a moderator moved my thread. I'll contact him and ask him to move me back.

I would invite you to list Bit20 on iconomifunds.com!

I understand the name is Iconomi Funds but here we are on bitcointalk talking about other coins Anyway I really look forward to helping fund managers like you get your name out, I believe these types of funds are the true on-ramp into crypto for the masses.

Take care!

Market settings changes

Hello dear traders and investors,

Bit20 has been evolving nicely since it's inception in December 2016. We are happy to observe that traders are buying and selling much higher than the "theoric" index price.

Why is that ?

Well, simply because they saw what Bit20 has performed very well in the last 18 months and deduce they can buy it even with a 50% premium, it's still a good investment with lots of potentials.

This market has been created with some very specific settings. These settings have been adjusted before the market was born.
Now that we have seen the price stabilising around 140% of the theoric asset price, we can adjust the market settings to fit better its trading environment.

2 changes:

The MSSR: When a shorter have its collateral falling below 175% of the price feed, a margin call will happen. A buy order will be automatically created in the market to buy back its undercollateralized asset(s).
This process guarantee that all smartcoins on the BitShares decentralised exchange are always well collateralised.

The MSSR is set at 110% at the moment. This would be good for gold or dollars because they are traded close to the price feed. No need then to buy back much higher.

In our Bit20 market, the asset is traded around 140% of the price feed. A buy back at 110% wouldn't be bought anytime soon. We will increase this value progressively until it reaches a value where it can be bought. It will be somewhere between 120% and 140%

What does it change for you concretely?

Really not much.

For the buyer, nothing at all.

For the shorter, you still can borrow BTWTY with the usual 175% collateral, the only difference is the price of the margin call if your collateral falls under the limit. If you are aware of what you do when you short BTWTY, that limit shouldn't be reached. If it is, the price you will be margin call will probably be around the one you sold and maybe cheaper, the spread is still wide. We won't raise this value until the point it is discouraging shorters, our goal is to incentive as many as possible!

Second change. After receiving some requests, we will enable the force settlement setting.
This option allows anyone with BTWTYs to force the market to buy the asset(s) they own at the price feed. The fact that this market is traded much higher than the theoric price feed make this option irrelevant because it's  easy to sell at a better price than the price feed.  

In order to let everyone consider this information, we will wait for 48h before operating any change.

Happy trading!

https://s6.postimg.org/nohmmh7pd/Bit20.png

On the 21st day of every month, Bit20 runs an algorithm that creates its new composition. By this process, it always includes the most promising coins. Some coins appear in the index and others disappear. Some of them gain weight and other lose some of it. This new composition swap with the previous one without any disturbance of the index price.

We have run this operation yesterday. Here is the new composition of the Bit20 Index Fund:

BTC 17078016203 USD 10 % 0.71737160102544 coins 1052.425 USD
ETH 3902138422 USD 10 % 17.403091633042 coins 43.3819359875 USD
DASH 717509157 USD 10 % 7.5515538083525 coins 99.97675 USD
XMR 319067298 USD 10 % 33.482640328029 coins 22.5483952225 USD
LTC 203245289 USD 10 % 186.74837820383 coins 4.042765 USD
ETC 174312828 USD 10 % 389.40794953477 coins 1.9387888925 USD
XEM 125694023 USD 7.6246819628123 % 41217.813889948 coins 0.0139660025 USD
REP 91378026 USD 5.543051053745 % 50.377328222237 coins 8.3070932175 USD
MAID 79586715 USD 4.8277823865975 % 2072.5801242003 coins 0.1758618725 USD
ZEC 66460478 USD 4.0315362318102 % 4.159935940413 coins 73.1676759125 USD
GNT 45441247 USD 2.7564958786354 % 3755.4007978812 coins 0.055416155 USD
STEEM 45195613 USD 2.7415955589181 % 1071.36165308 coins 0.193198 USD
FCT 31138767 USD 1.8888980511756 % 40.087617107078 coins 3.5574074725 USD
ICN 30978873 USD 1.8791987761531 % 398.43886601788 coins 0.356079 USD
WAVES 28453000 USD 1.7259776615464 % 457.97570806653 coins 0.28453 USD
LSK 25866417 USD 1.569073838479 % 479.12906531574 coins 0.24724425 USD
DCR 25329008 USD 1.5364742556894 % 18.632346478303 coins 6.22577 USD
DOGE 25137413 USD 1.5248519771928 % 497450.57362211 coins 0.0002314265 USD
MLN 19391789 USD 1.1763186529161 % 2.7451064224628 coins 32.352 USD
ARDR 19354616 USD 1.1740637143292 % 4575.174959717 coins 0.019374 USD

The composition is sent in the BitShares Blockchain so the witnesses can read it and publish the price in the decentralised exchange. This system guarantees decentralisation and prevent any market manipulation. Here it is:
http://cryptofresh.com/u/bittwenty.feed

You will find on the website the composition with the updated price of each coin and the total value of the index

https://s6.postimg.org/5xskeuitd/bit20_03_2017_1.png

Next, a glance at the state of the market since its creation on the BitShares Decentralised Exchange

https://s6.postimg.org/sb0b1njr5/bit20_03_2017_2.png

We are currently working on tracking data from Bit20 market to create a review of the coins movements inside the index, the volume traded, the trends of buyers and sellers and lots of other interesting information. We'll have this report ready in the course of the next weeks and will publish it on a regular basis.

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very interesting project, good luck