Korea’s largest cryptocurrency exchange has announced the launch of the country’s first cryptocurrency index.
Upbit, a relatively new Korean crypto exchange that has quickly established itself as the country’s biggest by trading volume, is launching the first domestic cryptocurrency index in a bid to help crypto investors better understand overall market trends. Dubbed the UBCI (Upbit Crypto Index), the index will be measured from four market indices based on long-term transactional data at the exchange by calculating standard values in confidence intervals, Business Korea reports.
The four indices developed are as follows:
- Market Index: A total cryptocurrency marketcap-weighted index that factors the market’s total liquidity ratio while providing investors an overview of all coins.
- Sector Index: An index that will classify coins in their own specific sectors based on their characteristics.
- Bitcoin Index: An index focusing on bitcoin trading prices in the market; and
- Strategy Index: A rule-based index to serve as an indicator of quantitative investors rules and tracking yields of investors’ crypto portfolios.
As reported previously in September, Upbit was first announced by FinTech startup Dunnamu – the operator of the country’s most popular stock trading app Kakao Stock as a comprehensive new trading platform with support over a hundred cryptocurrencies. An affiliate of Kakao Corp, Dunamu launched Upbit in beta the following month. Dunamu enabled Upbit traders to connect with other Kako apps including Kakao Talk, the country’s most popular messaging app used by 93% of South Korea’s population and Kakao Pay, a mobile payment platform with over 13 million users.
Within months of its launch, Upbit quickly became Korea’s leading cryptocurrency trading operator. Market data released by a politician from Korea’s ruling Democratic party last month revealed Upbit accounted for over half of the country’s cryptocurrency trading market at 52.9%.
Marketplace data of bitcoin trading in Korea over the last 24 hours shows a similar picture.