Sometimes it is more effective to invest in a basket of ideas rather than a single stock. CTD’s provide a fun way to allow key-opinion-leaders to jointly develop a portfolio in which investors can participate in.
For this type of mechanic to work, several principles need to be upheld.
The CETD needs to be able to closely follow the index of the underlying assets and represent it adequately
All calculations, smart contracts, and design needs to be visible and openly communicate to whomever wants to invest
All changes to the underlying portfolio need to be reflected in a timely manner in line with the update rules of the index.
Peer-reviewed analysis of the smart contracts, data pipelines, and architecture need to ensure a robust operations that is resistant to disruptions and manipulations.