Upbit, world’s fifth largest crypto index will announce the launch of a new cryptocurrency index called Upbit Crypto index(UCI). The goal of the index is to provide a standard index which can measure market conditions by suggesting and creating a coin quote standard. Danamu, Upbit’s parent company made this announcement on March 22nd 2018.
Long time transaction data pulled from the Upbit exchange will be utilized to measure four indices of the market.
- Market index: This will be a market cap that allows investors to measure the progress of all coins collectively. It takes into account the market;s liquidity ratio and enables investors to catch the flow of all coins at a glance.
- Sector index: The listed coins will be classified based on sectors of industry they serve. There will be a separate index for each sector based on its character.
- Bitcoin index: As Bitcoin is by far the most important cryptocurrency, it gets an index on its own.
- Strategy Index: This will be an indicator which will measure trade profits in accordance with a particular investment rule. It will be an indicator for setting a quantitative investment rule and tracking the yields of operated portfolios.
There is discrepancy between international and domestic crypto market. As South Korea is a dominant player in the market, this variance has significant implication. They are preparing a separate index for international market to expand its business.
Lee Seok-woo, the president of Dunamu has said that the present situation of crypto market resembles traditional markets and as the markets get increasingly sophisticated, the UBCI will play an important role in the area.
Upbit was created in October 2017 when Danamu and Kakao partnered with US-based Bittrx. In the following three months, Upbeat had topped the global trade market by grasping an average daily trade volume of $4.7 billion with the peak being a roaring $11 billion.