16 October 2019, 18:10
2 min reading
NASDAQ came up with good news for the crypto community on Tuesday. The world’s second-largest stock exchange has listed an index of top 100 crypto coins. This new index, called CIX100 index, will now sit with the likes of S&P 500 and the Dow. How this index of top 100 crypto coins works? NASDAQ announced
NASDAQ came up with good news for the crypto community on Tuesday. The world’s second-largest stock exchange has listed an index of top 100 crypto coins. This new index, called CIX100 index, will now sit with the likes of S&P 500 and the Dow.
NASDAQ announced the news of listing in a press release. The CIX100 index is AI-powered and is created by Cryptoindex, which is a crypto data provider. As per the company, the index will help the Wall Street traders with a quick and comprehensive view of the crypto markets’ performance in real-time.
This index of top 100 crypto coins is a crypto market benchmark that depends on a neural network algorithm and analyzes the data of top 100 cryptocurrencies on the basis of more than 200 factors. The index works without human intervention.
As per the press release, the data is taken from the nine biggest cryptocurrency exchanges around the globe. The data includes trade-related information, news releases and social media data, such as from Twitter, GitHub, and others.
The AI-powered index focuses on both newcomers and professional investors, and reportedly exclude the coins with fake volumes and rankings. “We make sure our index includes only [coins] that have no fake volume, have no manipulation, that come from scrupulous companies,” Kirill Marchenko, Cryptoindex Project Manager, told CoinDesk.
The index is rebalanced monthly and each coin is assigned a different weight in the index. From the initial pool of 2500 coins, it filters the coins that have been in the top 200 for a minimum of three consecutive months. Thereafter, it further narrows the list down to 100 coins using its neural network algorithm.
CIX100 index is not a new index, and was established in May 2017. It is already listed on Reuters, Bloomberg and TradingView. Its AI-based daily predictions are believed to be 82% accurate. The index has gained more than 1100% since its establishment, notes Cointelegraph.
Currently this index of top 100 crypto coins appears to be favoring Bitcoin more. Bitcoin makes up 77% of the index, about 10% more than its market cap dominance. On the other hand, Ethereum and XRP account for 7% and 4% of the portfolio respectively, marginally lower than their market cap contribution. In terms of predictions, the index appears bearish. The thirty-day prediction for every coin in the index suggests a sell signal.
Cryptoindex sees NASDAQ’s listing as a big win for itself. “The Cryptoindex team is honored to be listed on Nasdaq, which has always been a key platform for institutional investors to monitor classical indices,” said Cryptoindex.com advisor Austin Kimm. “Cryptoindex’s methodology meets the needs and requirements of heavily regulated asset managers, plus institutional and professional investors.”
NASDAQ’s listing is also a sign of crypto’s going mainstream. “We’ve become a more accessible and convenient financial instrument for all types of investors, not only professional,” Marchenko told Cointelegraph.
Prior to this, NASDAQ and CryptoCompare came together in June to come up with a cryptocurrency pricing product. This cryptocurrency pricing product uses CryptoCompare’s aggregate index datasets and is targeted at institutional investors. Cryptocompare has also partnered with BitMEX, which is a major crypto derivatives platform, to develop a real-time crypto futures dataset. This futures dataset will be for Refinitiv, which is a financial market data provider.
In February this year, NASDAQ also listed two cryptocurrency price indices — one from crypto market data firm Brave New Coin and the other from United States Blockchain. In another development, Sina Finance, a finance-based website owned by China’s Sina Corp, added a crypto index to its mobile app in summer.