Apollo Diversified Credit Securitize FundPrice

(ACRED)

ACRED is a feeder fund that tokenizes access to the Apollo Diversified Credit Fund, a traditional multi-asset, non-traded, closed-end interval fund. It invests across various private and public credit strategies, including direct lending, asset-backed finance, performing credit, distressed debt, and structured credit. This tokenization simplifies operational processes and is designed to provide broader access to private markets, essentially bringing a traditional financial product to a blockchain-enabled format.

No, ACRED is not a cryptocurrency in the conventional sense. It is a tokenized representation of an interest in a traditional financial product, specifically the Apollo Diversified Credit Fund. Unlike typical cryptocurrencies, it does not operate as a standalone digital currency, nor does it offer native blockchain staking or mining capabilities. Its primary function is to provide tokenized access to a traditional credit fund.

ACRED can be traded on digital asset platforms. It is designed to offer daily redemptions at its net asset value (NAV), aiming to provide liquidity to holders. However, it's important to note that the underlying traditional fund has limited liquidity, typically offering quarterly repurchase offers for a portion of shares outstanding. Users can find it listed on compatible crypto exchanges, like LBank, for trading.

The primary investment objective of the Apollo Diversified Credit Fund is to generate current income and achieve capital appreciation. This is pursued with an emphasis on maintaining low volatility and exhibiting low correlation to broader financial markets. The fund achieves this by employing a diversified, global credit strategy across various types of private and public credit instruments.

Investing in ACRED involves risks from both traditional finance and the Web3 space. The underlying Apollo Diversified Credit Fund has limited liquidity, typically offering quarterly repurchase offers for only a portion of outstanding shares, meaning there's no guarantee investors can sell all their desired shares immediately. Additionally, as a tokenized asset, it is exposed to general Web3 risks such as potential smart contract vulnerabilities, economic exploits, and broader market volatility inherent in digital assets.

While ACRED is not a traditional cryptocurrency with native blockchain staking, its protocol may introduce an ecosystem "staking" mechanism. This could allow participants to earn rewards, potentially from liquidations or token emissions, which differs fundamentally from typical blockchain consensus staking. ACRED airdrops are planned distributions of tokens to early users and community members, often requiring them to claim these tokens and potentially engage in specific actions, like staking, to participate in on-chain rewards or governance.