Cryptocurrency has started taking off in India in recent times. The past couple of years has seen several people investing and actively being a part of the cryptocurrency community in the country.
Hence, it is quite fitting and necessary for India to get its own cryptocurrency index. The cryptocurrency app, Cryptowire, recently launched India’s first cryptocurrency index called IC15.
The Function Of Cryptocurrency Index
The IC15 index will monitor the progress of and performance of the 15 most-traded cryptocurrencies that are listed on crypto exchanges globally. The core objective of the index is to provide insights into index-linked products such as EFTs and funds.
It helps investors by tracking the value of a group of cryptocurrencies which will, in turn, help them avoid investing in a single-digit currency.
The index also includes a committee based in the government. It comprises accomplished domain experts, academicians, and industry practitioners. These experts will monitor and maintain the rebalancing of the top 15 cryptocurrencies every quarter. The index captures over 80 percent of the market movement.
The parent company of the index has reported that its intention is to create awareness about cryptocurrencies and the underlying blockchain technology that exists amongst investors. This launch comes at a crucial time when the authorities have been looking into setting up some rules to regulate the new industry of cryptocurrency as it flourishes.
The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, is the new cryptocurrency bill and was expected to get the Parliament’s approval this winter session but unfortunately, could not succeed.
The Reserve Bank of India (RBI), which is reportedly not excited about private cryptocurrency coins, has announced that it is working to launch its own cryptocurrency.
Jigish Sonagara, the Managing Director and CEO of Cryptowire, has stated that the approach for the index is to facilitate market development.
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The main approach of the index is to mitigate risk by presenting the tools to evaluate possibilities for the investors to make the required decisions. He added that their goal is to encourage the participants “to use this research-oriented, technology-powered opportunity for tracking the market.”
The index IC15 also intends to teach investors how virtual coin trading works which come at an extremely opportune time as the cryptocurrency trade sees a massive rise in the country.
The Takeaway From This Development
Basically, an index is an indicator or a measure of a given commodity. In Economics, it is defined as an economic barometer that measures the change in the basic market value. It also monitors the performance and changes in value that are essentially based on currency, stocks, bonds, or the entire market itself.
The top 15 most widely traded cryptocurrencies that are listed on cryptocurrency exchanges include Bitcoin, Ethereum, Litecoin, Binance, Coin, Chainlink, XRP. Bitcoin Cash, Cardano, Solana, Terra, Avalanche, Polkadot, Uniswap, Dogecoin, and Shiba Inu. Among the tokens, Bitcoin holds the most weightage with Ethereum following in second place and Binance Coin taking up the third spot.
Edul Patel, CEO & Co-Founder of Mudrex, said, ”A crypto index would track some of the top cryptocurrencies by market cap, and hence, would eliminate the random tokens with no fundamental or viable use cause Indian investors are traditionally more risk-averse compared to our western counterparts. Hence, a crypto index would be an ideal benchmark for Indian investors dwelling in the cryptocurrency market.”
This index is fated and bound to help the cryptocurrency industry grow and flourish in India and has seemed to arrive at a very opportunistic time to further help investors as the market rises higher every day.
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Sources: TimesOfIndia, NDTV, FirstPost +more
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This Post Is Tagged Under: Cryptocurrency, cryptocurrency community, cryptocurrency index, cryptocurrency app, Cryptowire, cryptocurrency index, IC15, crypto exchanges, EFTs, investors, cryptocurrencies, domain experts, academicians, industry practitioners, Cryptocurrency and Regulation of Official Digital Currency Bill, Reserve Bank of India (RBI),Jigish Sonagara, index IC15, virtual coin trading, Bitcoin, Ethereum, Litecoin, Binance, Coin, Chainlink, XRP. Bitcoin Cash, Cardano, Solana, Terra, Avalanche, Polkadot, Uniswap, Dogecoin, Shiba Inu
