Korean cryptocurrency exchange Upbit will launch Korea’s first cryptocurrency index.
The concept is to provide a standard index which can measure market conditions by suggesting and creating a coin quote standard.
Dubbed the UBCI (Upbit Crypto Index), the index will be measured from four market indices based on long-term transactional data at the exchange by calculating standard values in confidence intervals, Business Korea reports.
The UBCI is produced by collecting long-term transaction data from Upbit and calculating standard value in confidence intervals.
The four market indices used for measuring the market are:
Market Index: An index that shows the total amount of market capitalization, adjusts the assets ratio on the market and provides investors with useful information about all crypto currencies.
Sector Index: An index that segments the crypto coins according to their own characteristics.
Bitcoin Index: An index which is based on Bitcoin trading values; and
Strategy Index: An index that is used as an indicator of investor participation rules and portfolios verification.
President of Dunamu, Lee Seok-woo, told local media:
The present situation of the cryptocurrency market is quite similar to the traditional financial market based on stocks and bonds in its early stage. 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.
Within months of its launch, Upbit quickly became Korea’s leading cryptocurrency trading operator. Market data released by a politician from Korea’s ruling Democratic party last month revealed Upbit accounted for over half of the country’s cryptocurrency trading market at 52.9%.
Upbit currently handles $732 million (86,700 BTC) per day, according to Coinmarketcap.