Cryptowire, the world’s most popular cryptocurrency app, just launched a crypto index in India to monitor the progress of the world’s 15 most traded cryptocurrencies which are listed on the world’s most important exchanges. The cryptocurrency index is abbreviated as IC15.
Cryptocurrencies have grown as an asset class in their own right in recent years, receiving greater recognition and piquing people’s attention. An index that covers more than 80% of market activity is rather a critical market tracking and evaluation tool through which we can make effective decisions and improve accountability.
TickerPlant’s Cryptowire is a dedicated business enterprise that provides crypto statistics. IC15 index aims to raise awareness and understanding of the crypto and blockchain environments, according to the organization. The Index Governance Committee at CryptoWire, formed of domain experts, business professionals, and scholars, will manage, oversee, and govern the index along with rebalancing it quarterly. The index’s base point is fixed at 10,000, as well as the base date is April 1, 2018.
According to the India Today article, the index would assist investors and help them in determining the appropriate level and way digital currency trading works. The news happened at a time when the cryptocurrency market in India has experienced a significant increase, with more individual investors exhibiting enthusiasm in electronic money despite strict restrictions.
How will IC15 work?
According to the Mumbai-based startup, IC15 is intended to give insights into crypto mining as well as a real gauge and reflect off the fundamental crypto market, serving as a predictor of the industry in a way, with a diverse pool of general market attitudes.
The CryptoWire article explained that the index serves as a standard of measurement for fund managers and offers a good alternative to diversifying a portfolio. Thus, it is the favoured index for the formation of index-linked products. This even places the index in a favourable position for fast derivatives trading in the cryptocurrency trading industry.
Jigish Sonagara, the Managing Director and CEO of CryptoWire, said, “Our approach is to facilitate market development and mitigate risk to a great degree by presenting all possible tools to evaluate possibilities and make decisions.”. He added, “We want all participants to utilise, to the fullest, this research-oriented, technology-powered opportunity for tracking the market,”.
For a cryptocurrency to be included on the index, it must be actively traded for at least 90% of trading days during the evaluation period. It must also be ranked in the top 50 by market capitalization for the previous month. To be eligible to participate in the IC15 index, the coin must also be among the top 100 most liquid cryptocurrencies in terms of market value. As noted previously, the IC15 index will be tracked, evaluated, and recalculated quarterly. The top tokens are Bitcoin, Ethereum, Binance Coin, and Solana, which hold the first four spots.
Primary objectives of IC15 index
- Provide information about index-linked assets such as cryptocurrency ETFs and funds. This will aid in the dissemination of knowledge regarding crypto mining and the wider cryptocurrency industry.
- IC15 will essentially assist investors in understanding critical aspects of the blockchain ecosystem and will also give methods for diversifying crypto assets.
- Because it is a basic crypto market monitoring index that provides an overall representation of the international marketplace, it will benefit crypto investors as well as the nation’s financial advisers.
Which cryptocurrencies will be included in the index?
Bitcoin, Ethereum, Solana and Binance Coin remains the top 4 crypto’s on the IC15 index as of 1st January 2022. Other coins include names such as XRP, Litecoin, Polkadot, Uniswap, Terra, Dogecoin, Bitcoin cash, Shiba Inu, Chainlink, and Cardano.
Multiple research organisations’ surveys have shown that India has the most crypto investors in the globe. The figure is estimated to be approximately 100 million. The much-anticipated cryptocurrency law in India, which was due to hit the Parliamentary table during the winter session, has been forwarded to the States for ratification early last month. Since then, there has been no official news about the measure. The IC15 index can indeed assist India’s increasing number of cryptocurrency investors in making informed judgments.