Upbit Exchange to Launch Korea’s First Cryptocurrency Index

Upbit, South Korea’s second largest crypto exchange, is planning to launch a new cryptocurrency index called UBCI (Upbit Crypto Index). The concept is to provide a standard index which can measure market conditions by suggesting and creating a coin quote standard.

In a report by Business Korea this morning, it was noted that the company operating Upbit, Dunamu, aims to provide this index in order to make it easier for investors to understand overall market trends and the bigger picture.

Upbit Exchange to Launch Korea’s First Cryptocurrency Index

Branching Out

In addition to the new cryptocurrency index, the company also plans to expand the business so that the index can be used on international markets. There is often a discrepancy between cryptocurrency prices on domestic and international markets due to local demand. South Korea is a dominant player in crypto trading and what happens there often has wider implications across the rest of the world.

The new index will function by collecting long term transaction and trade data from the exchange and using it to create a standard value in confidence levels. Four indexes will be developed: a Market Index, Sector Index, Bitcoin Index, and a Strategy Index. The Market, Sector, and Bitcoin indexes will be launched in April, and Upbit will launch the Strategy Index later in the year.

Each index uses a different set of metrics to make its calculations. The market cap-weighted index will use the total market liquidity ratio to enable investors to observe the flow of all cryptocurrencies at a glance. Classifying the category of each type of digital coin will provide the data for the Sector Index, and the Bitcoin Index will use the market share and dominance of BTC to build its results. The Strategy Index uses a longer-term quantifiable investment quotient to analyze portfolios and track their yields.

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.

Upbit currently handles $732 million (86,700 BTC) per day, according to Coinmarketcap. It has recently added a number of new altcoins to its listings, including Icon and Tron, and is the country’s second largest exchange after Bithumb.

Will cryptocurrency indexes increase trade and bolster markets? Add your thoughts below. 

Images courtesy of GoodFreePhotos, Pixabay, and Bitcoinist archives.

22.03.2018 / 22:45 176
Upbit Launches South Korea’s First Cryptocurrency Index, Key For Adoption Upbit Launches South Korea’s First
South Korea’s second largest and the world’s fifth biggest cryptocurrency exchange, Upbit, has announced the launch of the countries first domestic
South Korea’s Kakao to Integrate Cryptocurrency For 12,000 Merchants & Millions Users South Korea’s Kakao to Integrate
Asia Business, an influential finance-focused media outlet in South Korea, has reported that Kakao, one of the two largest internet companies that
Coinbase Launches Cryptocurrency Index Fund, and Yes, You Can Invest with Bitcoin Coinbase Launches Cryptocurrency Index
Cryptocurrency brokerage platform and exchange operator Coinbase is launching a cryptocurrency index fund, and yes, you can invest with Bitcoin.
Crypto Exchange Coinbase Launches Four-Coin Index Fund, Only For Accredited Investors Crypto Exchange Coinbase Launches
Crypto exchange and wallet Coinbase is starting its own four-coin index fund, open to all U.S. residents that are also accredited investors. Crypto
South Korea’s Largest Messaging App Plans Blockchain Unit with ICO Launch South Korea’s Largest Messaging App
Kakao Corp, operator South Korea’s largest messaging platform KakaoTalk, is set establish a subsidiary focused on blockchain technology coinciding
South Korea Chat Giant ‘Will Launch ICO’ In New Blockchain Drive – Report South Korea Chat Giant ‘Will Launch
South Korea’s largest chat app operator Kakao is looking to expand into the international Blockchain market via a so-called “reverse ICO,” sources
Comments (0)
Add a comment
Comment on