Trading technology provider Krypton Software is launching a new set of indices that are tracking changes on the cryptocurrency market. The company is focusing on three distinct measures that may be interesting to different types of traders and investors.
A proprietary algorithm is tracking the changes of each of the indices and calculates them in real time, updating an API feed which can be distributed to a different set of apps. The company shared with Finance Magnates that the value is calculated via the firm’s own price feed which is connected to over 10 crypto exchanges.
Market Cap Indices
The first type of the index is focused on the changes in the value of the market capitalization of the biggest cryptocurrencies. The market cap indices measure the change of the top 5, 10, 30, 50 and 100 cryptocurrencies. The company named those CC05, CC10, CC30, CC 50 and CC100.
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The level of the index is calculated by multiplying the price of each cryptocurrency in the index by the supply of coins that are in circulation at the time of calculation. Krypton Software’s proprietary divisor of the sum is adjusted in the case of a change in the number of coins or similar structural changes to the market. The adjustments are made to ensure that such events do not in themselves alter the numerical value of the Index.
Krypton Software’s team will be making a monthly reconstitution to define which are the top 5, 10, 30, 50 and 100 currencies.
Volatility and Sector Indices
The second type of index focus on volatility. Two products measure the standard deviation of the CC10 on a daily and weekly basis. In contrast to the real-time update on the market cap indices, these generate a new price each 15 seconds.
The third type of index is still under development and Krypton Software expects it to go live at the end of the month. These products will focus on the different sectors of the cryptocurrency market with the inclusion of coins and tokens that are related to a specific industry. The company has at present defined 9 major categories and 28 sub-categories.