IIP-43: Deprecation of the $CGI Product

IIP: 43 Title: Deprecation of the $CGI Product Status: Proposed Author: Michael Petch (@mcgpetch) Discussion-to: https://gov.indexcoop.com/t/iip-43-deprecation-of-the-cgi-product/1537 Created: May 17, 2021

Simple Summary

CoinShares proposes the deprecation of the $CGI due to the inability to support the resources to scale the product and the lack of product market fit.

Abstract

Over the past few months since launch the $CGI has struggled to capture significant inflows into the product. This can be attributed to a few reasons, notably, the inability to support enough liquidity in the gold stablecoin constituent which has ultimately deterred the ability to attract large size and trust from investors. Additionally, the $CGI investment strategy which is designed to be a conservative strategy by reducing risk and volatility lacked product market fit during this period in the market. Investors are currently driven by risk-on strategies while the $CGI is a conservative, wealth-preserving play. The $CGI is therefore struggling to generate demand from investors.

Motivation

Index Coop products should be reviewed on a continued basis to determine if they are achieving their goals and maintaining appropriate standards. Currently, the $CGI is unable to generate enough liquidity to support the product effectively and is lacking product market fit. CoinShares, as the methodologist, suggests for the product to be deprecated.

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