CI10, CI20 and CI50 Formula
The CryptoCoin Index 10 (aka CI10TM) and the CryptoCoin Index 20 (aka CI20TM) and the Crypto Index 50 (aka CI20TM) are threeo benchmarks designed to provide you, the individual investor, with the weighted average of the top 30 and top 100 crypto coins. It is calculated by the trading prices (in U.S. dollars) every 5 minutes based on the prices of various crypto exchanges using a volume-weighted moving average. A benchmark is a standard against which the performance of a security, portfolio or investment manager can be measured.
The CI10TM and CI10TM and CI50TM are market benchmarks for the crypto coin/currency market.
Benchmarks are indexes created to include multiple securities representing some aspect of the total market. Benchmark indices have been created across all types of asset classes. In the equity market, the S&P 500 and Dow Jones Industrial Average are two of the most popular large cap stock benchmarks. Benchmarks are often used as the central factor for portfolio management in the investment industry. Passive investment funds and smart beta funds are two strategies that are derived from benchmark investing. Replication strategies following customized benchmarks are also becoming more prevalent. Active managers are also in the market deploying actively managed strategies using indexes in the most traditional form, as benchmarks they seek to beat.
Below is our criteria and methodology for the CI10TM CI20TM and CI50TM benchmarks:
|Criteria||CI10TM and CI20TM CI50TMT||Benefit|
|Objective||Objective||The CI10TM CI20TM and CI50TMare designed to objective and comprehensive with coverage of the underlying crypto market without gaps or overlaps. There is no sampling of data.|
|Transparent||Construction||The CI10TM CI20TM and CI50TMaare using an open, published, rules-based methodology which is familiar to financial professionals. Both indices adhere to rules making it completely transparent in its construction and display.|
|Underlying Data||Uses actual market data||By using actual market data, the CI10TM CI20TM and CI50TMa reflects the real price of the crypto currencies in each index.|
|Weighted Average Market Capitalization||Market Cap Weighting||By taking into consideration the number of crypto currencies transacted, the CI10TM CI20TM and CI50TMa both utilize the weighted average market capitalization of the crypto market capitalization of each coin/currency in the index. In such a weighting scheme, larger coin/currency account for a greater portion of the index. Most indexes are constructed in this manner, with the best example being the S&P 500.|
|Time||Accounts for last 2 hours of trades||By including 2 hours of data lowers the risk of outlier transactions disproportionately impacting the CI10TM CI20TM and CI50TMa value.|
|Currency||Only transactions for currencies in U.S. dollars are considered||By including only electronic trading platforms on which users may buy and sell bitcoins with others in exchange for U.S. dollars, CI10TM CI20TM and CI50TMa avoids issues related to exchange rates used to convert transactions.|
Instruments for the CI10TM have to have a market cap of at least $100m and have maintained that market value for a minimum of 90 days. Each instrument must also have a minimum of 6 months of trading to be considered a part of the index.
Instruments for the CI20TM must have at a minimum of 3 months of active public trading history. At the beginning of each quarter a review of the instruments is conducted with replacement of crypto currencies for inclusion or exclusion for the index for the next quarter.
Instruments for the CI500TM must have at a minimum of 3 months of active public trading history. At the beginning of each quarter a review of the instruments is conducted with replacement of crypto currencies for inclusion or exclusion for the index for the next quarter.
|New ICO||Instrument Inclusion||
If any Initial Coin Offering (ICO) is launched and immediately or eventually reaches the criteria for inclusion in the CI10TM CI20TM and CI50TM, in terms of market capitalization and remains at that level, it will be included in the appropriate index at the end of the qualifying period during which that level was achieved.
Given that several coin forks have occurred, in the event that an existing coin splits into more than one new coin, and assuming that the resulting coins maintain their market status, one or both of them will be eligible to remain included in either Indices. The occurrence of a fork will allow for an immediate adjustment in the instrument selection for either index.
At the beginning of each quarter a review of the instruments is conducted with replacement of crypto currencies that have failed to maintain the necessary market valuation. Instruments that fail to maintain this market valuation and/or cease to trade will be removed. If an coin, included in either index ceases to trade or otherwise cease to have a determined market capitalization or price, we will freeze the weight in the index until such time as we replace it with a qualifying instrument.
If any coin is merged or otherwise acquired by another coin (or similar corporate action) will have their market weight frozen until the next adjustment of instruments in either index.
CI10TM CI20TM and CI50TMare a proprietary indices of The Blockchain Academy Inc.
Copyright 2017-2018, Licensed to The Blockchain Academy Inc., All Rights Reserved.
CI10TM CI20TM and CI50TM are proprietary marks licensed to The Blockchain Academy Inc.