The South Korean biggest crypto exchange by traded volume has announced on 22nd March 2018 about launching the first crypto index in the country.
Upbit has drawn the attention of citizens quickly and has grown as a crypto platform just as fast. The Korean’s largest cryptocurrency exchange is now launching the country’s first crypto index in order to provide investors more detailed information about market trends.
These are the four indices that Upbit plans to use
The project was entitled Upbit Crypto Index (UBCI). According to Business Korea, the index claims to “measure market conditions by suggesting a standard on coin quotes”, by using four market indices.
The four indices 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.
Upbit is the South Korean crypto exchange leader by traded volume
The announcement of the Upbit crypto exchange’s launch was made on 27th September 2017 by Dunnamu, a startup platform for Fintech and the most popular stock trading service retailer. At launch, the Upbit platform offered services for one hundred crypto assets. Being a partner with Kakao Stock and even connected with the most popular messaging application in the country, called Kakao Talk which covers 93% of the South Korean population, Upbit has been able to offer unique services to customers.
Just a few months after opening, Upbit quickly became the largest crypto trading operator in South Korea. According to a report made public last month by a national party, Upbit seized 52.9% of the cryptocurrency trading national market.
The marketplace details of Bitcoin trading operations in South Korea over the last 24 hours is shown in the picture below:
The Dunamu’s President Lee Seok-Woo has compared the current phase of the crypto market with the standard financial ones. In conclusion, he stated that:
“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.”
Until April 2018, Upbit plans to release three indices, while the Strategy Index will be released later.