Cryptocurrency exchange platform Huobi.Pro today launched ‘Huobi 10 Index’, a composite price index that will track 10 popular crypto coins that are traded against USDT (USD Tether) on its platform.
According to the official announcement:
“Huobi 10 Index selects 10 large scale digital assets with high market capitalization and strong liquidity. The purpose of the index is to accurately reflect the market performance of U.S. Dollar Tether (USDT) pairs on Huobi Pro. New indices are also planned to be released in the near future to offer investors an array of indices choices. These indices will give investors a sharper snapshot of specific segments of the market, as well as funds a benchmark to compare against.”
The 10 component cryptocurrencies of the Huobi 10 index include,
Depending on the different properties of the blockchain assets, Huobi.pro classifies them into four categories:
– The “coin” refers to an asset developed on the basis of blockchain technology that does not correspond to a specific use case and whose main function is only the subject of the transaction, the value of which is mainly reflected through liquidity;
– The “platform” coin refers to the asset associated with development of the underlying blockchain technology and supported by the right to use or to participate in the platform;
– The “application” coin refers to the asset associated with a specific application scenario and supported by a certain right to use, participation or dividend;
– The “real asset token” refers to digital currencies that are linked with gold, US dollar and other actual assets.
On this basis, Huobi 10 Index is calculated by the formula of Pasche weighted composite price index, with the average daily trading volume of the previous quarter taken as a core index of sample selection.
The daily average data can reduce the impact of single-day price volatility and better reflect the liquidity of digital assets during the audit period. In addition, this index will determine the proportion of index components of different types of blockchain assets according to the sum of the average daily trading volume of each type of blockchain assets in the previous quarter, so as to comprehensively reflect the overall performance of blockchain assets listed on Huobi and reflect the overall development of all kinds of blockchain technology applications.
Currently, the Huobi group has launched the Huobi 10 index with a base of 1,000 points, which will be published in global financial communications agencies such as Bloomberg at a later date. In the pipelines, there are big plans set for the Huobi 10 Index.
Working towards the timeline of June 2018, Huobi Group is looking to launch another financial product, named ‘HB10’. It will be launched based on the Huobi 10 Index. Future financial derivatives are planned to be released based on Huobi 10 Index.
Huobi 10 Index has scored well against Bitcoin (BTC). According to the historical data from March to May, the alpha of Huobi 10 Index compared to BTC is -0.0028, while the beta of the index based on BTC is 0.79. This proves that Huobi 10 Index is effective in maintaining alpha while suppressing volatility.
One can safely say that the Huobi group is achieving a good market scale as well as entering into a goo stage of maturity with the introduction of a financial index. For example, S&P500 and MSCI Indices have become benchmark indices used by global portfolio managers. The Huobi 10 Index is a comprehensive index composed of a number of digital assets. The index was compiled using world-class technology similar to traditional composite indices methodologies.
Huobi Pro is one of the leading digital asset exchange globally. Through its platform, Huobi Pro offers cryptocurrency traders worldwide access to more than 100 digital assets. Underpinned by world class security and risk control systems, it is one of safest exchanges in the market today. Huobi Pro is also proud to be the first cryptocurrency exchange that provides 24/7 customer service.
KryptoMoney.com publishes latest news and updates about Bitcoin, Blockchain Technology, Cryptocurrencies and upcoming ICO’s.
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
