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# Problem: Capturing Crypto Market Beta

The crypto market is an ever-evolving ecosystem, marked by rapid innovation, extreme volatility, and a constant influx of new tokens and concepts daily. For investors, this creates significant challenges in identifying and capturing **market beta**, the overall performance of the crypto market, without being overwhelmed by complexity or exposed to excessive risk.

In traditional finance, **passive index investing** has proven to be a reliable approach for stable, long-term growth. Historical data shows that **90% of active funds underperform benchmark indices** over periods of 3, 5, and 10 years. The crypto market, with its high volatility and lack of mature investment tools, amplifies these challenges for active investors.

<figure><img src="/files/OvpUzjIgLyv9uEtzcc4o" alt=""><figcaption><p><em>Percentage of active funds underperforming the benchmark index</em></p></figcaption></figure>

The problem is clear:

* **Noise and complexity:** The sheer volume of information and new tokens makes it difficult for investors to make informed decisions.
* **Volatility and Risk:** Individual tokens experience extreme price swings, posing significant risks for investors.
* **Lack of Tools:** Crypto lacks robust, decentralized tools for passive, index-based investing that are common in traditional finance.

Without an efficient, transparent, and decentralized solution, investors are left to navigate the crypto market without the tools they need to capture its growth effectively.


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