Korean cryptocurrency exchange Upbit will launch Korea’s first cryptocurrency index.
Dunamu operating Upbit announced on March 22 that the company developed the UBCI (Upbit Crypto Index), a standard index that can measure market conditions by suggesting a standard on coin quotes.
Upbit is aiming to provide its own cryptocurrency index to make it easier for investors to understand overall market trends. In addition, the company is planning to expand the business so that the index can be used as a standard index in overseas markets beyond the domestic market as Upbit is leading the world market as well as the domestic market in terms of trading volume.
Upbeat has been preparing the index business since its opening. The UBCI is produced by collecting long-term transaction data from Upbit and calculating standard value in confidence intervals.
The indexes developed this time are the Market index, the Sector index, the Bitcoin Index and the Strategy Index. Among them, Upbit will launch the Market, Sector and Bitcoin Indices in April, while the Strategy Index will open later.
The Market Index is a market cap-weighted index that takes into account the market's total liquidity ratio and enables investors to catch the flow of all coins at a glance. The Sector Index is a method of calculating an index for each sector by classifying the characters of coins, and the Bitcoin Index is the indexation of Bitcoin representing the market. Moreover, the Strategy Index is an indicator for setting a quantitative investment rule and tracking the yields of operated portfolios in accordance with the rule.
"The present situation of the cryptocurrency market is quite similar to the traditional financial market based on stocks and bonds in its early stage," said Lee Seok-woo, president of Dunamu. “Accordingly, as the market gets more sophisticated, the UBCI is expected to play an important role in this area in the future. We will also disclose the index rulebook and let the market evaluate it before long."