Upbit, the fourth cryptocurrency exchange by trading volume, is going to launch the first digital currency index in South Korea. The index will be called UBCI (Upbit Crypto Index). The intention is to provide investors better understandings of the cryptocurrency markets and trends.
Korea’s First Cryptocurrency Index
According to Business Korea, the company explained that the index will measure market conditions by suggesting a standard on coin quotes. At the same time, Upbit is also thinking about expanding its business overseas reaching other markets and not just South Korea.
Upbit was launched in October 2017 and allows South Koreans to have access to several cryptocurrencies in the market. At the same time, the exchange is now processing more than $1 billon dollars being STORM/KRW, BTC/KRW and ADA/KRW the most traded pairs accounting for 2/3 of the total trading volume of the platform.
President of Dunamu, the company behind Upbit, commented:
“The present situation of the cryptocurrency market is quite similar to the traditional financial market based on stocks and bonds in its early stage. Accordingly, as the market gets more sophisticated, the UBCI is expected to play an important role in this area in the future. We will also disclose the index rulebook and let the market evaluate it before long.”
Upbit is an important player in the South Korean market. It accounts for more than half of the trading volume of the country just some months after being launched. At the moment, the company accounts for almost 53% of the national market.
The data used by the index will be measured by Upbit andwillbe used to develop a standard value in confidence intervals. These indexes that will be created are: the market index, the Sector index, the Strategy index, and the Bitcoin index. Some of them will be available in April, while others will be launched later this year.
The indexes will use different metrics according to what they are trying to measure. Some of them would allow investors to monitor all virtual currencies at a glance, and others would provide analytical tools for investors in order to develop quantitative investment strategies.