Binance, the world’s largest cryptocurrency exchange by trading volume, has announced that it will be launching its first index product that will track the top 10 biggest cryptos, as ranked by their market capitalization.
Binance Launches First Index Product
On Monday, October 17th, Binance announced the launch of its first index product, the ‘CoinMarketCap (CMC) Top 10 Equal-Weighted Index‘, which the exchange says will be the first in its ‘Binance CMC Index Series’.
As per the announcement, the index will track the performance of the top 10 cryptos ranked by market capitalization. The index will utilize pricing information from CMC, the world’s most-referenced cryptocurrency data tracking site owned by Binance.
What to expect
Starting in November, the index will be integrated into Binance’s auto-invest feature. This will allow users to automate and diversify their cryptocurrency portfolios using the dollar-cost averaging (DCA) strategy.
The ‘Equal-Weighted Index‘ will be rebalanced monthly, and is designed to help investors evaluate price and performance. Furthermore, users can expect additional indices to be launched in the future to encompass “more digital assets in a diverse set of products.”
On the Flipside
- Binance recently carried out a hard fork following the recent $100 million BNB Smart Chain hack in order to secure it from further attacks.
Why You Should Care
The index is positioned to provide a better way for investors to monitor and evaluate the performance of the crypto market, thereby facilitating easier, more efficient research and purchase capabilities.
For more on Binance’s expansion, read:
Binance Pool (NASDAQ:POOL) Unveils $500 Million Fund to Support Bitcoin (BTC) Mining
Get the full details of the $100 million BSC exploit:
BNB Chain Re-Activates From Shutdown Following ‘Potential Exploit’ of $100 Million