CryptoEye – World's First Cryptocurrency Index and Analysis Platform
Veterans of the cryptocurrency market are often at pains to educate newcomers on the follies of employing most conventional market practices in the cryptospace as commonplace analytical features of conventional markets tend not to be easily reconcilable with this new market.
The reasons are multifarious but it's primarily attributed to the fact that all conventional fiat valuations in the crypto market are purely speculative and the marketplace itself, being unregulated, is rife with manipulation and various exploitative practices.
This is not to say that all conventional variables and measures are altogether redundant. The unrelenting influx of new currencies can knock any trader for a loop when it comes to making sense of the market.
Index in the conventional stock market is a means of ascertaining a weighted average for a selection of assets. It is often used by investors as an overview of the direction of the market.
CryptoEye Cryptocurrency Index
CryptoEye, a new platform launched by Double Capital Group in Europe, provides a real-time Index feature for cryptocurrencies. Crypto assets are classified under five categories with an Index computed for each.
Blue Coins tracks the dynamics of the first five currencies in terms of market capitalization. The index is the main benchmark of the state for the entire crypto ecosystem, representing more than 80% of the volume of the crypto-currency market.
Second Tier tracks the dynamics of the top twenty cryptocurrencies in terms of market capitalization except for those included in Blue Coins. A more aggressive rate on market growth, due to a fraction of the capitalization compared with the leaders, but having a unique product that in the future can capture a larger market share. Together with the index Blue Coins they represent about 95% of the total market capitalization of the Crypto-currency.
Currencies tracks the dynamics of the largest cryptocurrencies, acting primarily as a means of payment. Issuers in the index perform the function that was at the source of the crypto-currency – a decentralized payment processing system. It is the largest industry index by capitalization. The index is weighted by market capitalization with limiting weighting factors (maximum 25% per issuer)
Services tracks the dynamics of the largest crypto-currencies that represent products and services ready for use by the end user. Issuers develop products: data storage, payment systems, lending, cloud computing, etc. The index is weighted by market capitalization with limiting weighting factors (maximum 25% per issuer)
Platforms tracks the dynamics of the largest cryptocurrencies, acting as infrastructural solutions. Issuers create various ecosystems and sites for crowd-funding, creating their own applications, asset management platforms, etc. The index is weighted by market capitalization with limiting weighting factors (maximum 25% per issuer)
How Are Indices Calculated?
The Indices are weighted by market capitalization with a restriction on the minimum period (3 months) of listing on exchanges. All crypto assets also have their own ‘wiki' on the website which provides an overview of the asset and its features and functionalities.
For all indices, a uniform calculation formula is used, based on the weighting of currencies according to market capitalization, taking into account the weight limiting coefficient. The value of all indices is calculated as the ratio of the market capitalization of all currencies as of the moment of calculating the index to the value of the divisor.
More Features to Come
“The classification of all the information obtained will be subject to an all-round systemic analysis which will uncover the factors that affect a specific crypto asset. As a result, a summary of important news will be formed, together trading signals, allowing the investors to determine the best moment for buying or selling assets — or to create an automatic trade strategy, using such signals, directly on our platform,” explained Sergey Geller, Co-founder of Double Capital Group.
While it is difficult to recommend employing indices as a guide for investment decisions in an unregulated market, CryptoEye posits an interesting approach for quantifying crypto assets. Even in the conventional regulated market, index funds are susceptible to tracking errors.
However, the tool does come in quite handy by offering an indication of the general performance of a certain sector of the market, such as services and platforms. The performance of these indices provide a barometer for general interest in such assets.