Ordered Chaos: Why the CoinDesk Market Index Matters for the New Economy

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For a viable capital market to form around a nascent industry, investors need a standardized, broad-based benchmark against which to measure and assess performance. Welcome to the new CoinDesk Market Index (CMI). By JodieGunzberg and mikejcasey

There’s a reason a trusted index had not yet arisen for crypto. A technology with huge potential to disrupt multiple sectors and a dizzying array of projects requires detailed, rigorous analysis to define and weight the various constituents of an appropriate index.

This consistently applied framework is the foundation for the CoinDesk family of market benchmarks. There, the broad CMI is accompanied by six subindices representing the six DACS sectors, along with an ex-stablecoins market index and an ex-stablecoins currency index, both of which limit the influence of market movements to tokens that are intended to rise or fall versus the U.S. dollar.

As for the challenge of data integrity, CoinDesk is uniquely positioned as the market leader with the most experience working with the challenging crypto data set. In November 2014, the CoinDesk Bitcoin Price Index was launched as the first-ever crypto index. Since then it has been reliably calculating every second of bitcoin’s pricing through pitfalls of variable data.

The constituents that meet these requirements are then weighted by market capitalization. The CMI index family is calculated in real-time using reference rates for each asset. The index is reconstituted and rebalanced monthly.

 

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JodieGunzberg mikejcasey thanks for sharing.

JodieGunzberg mikejcasey Why is nooboody talkingDJWH aboout this?

JodieGunzberg mikejcasey finally we got a solid dex

JodieGunzberg mikejcasey Why is everybodyy silent on thiss?

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