NASDAQ creates cryptocurrency index
A basic element that can reflect the value of a financial asset or a whole economy in just a few numbers is an index. The index takes a start for the economy, the stocks or whatever it counts and traces its route through the time. Usually, in traditional finance, an index has the value 100 in the beginning and moves according to price movements. Values over 100 shows economic growth while values under 100 shows economic recession.
An index like that was created from NASDAQ for cryptocurrencies, a similar of S & P 500 and Dow Jones for stocks. In the index, there are 100 top cryptos, according to the volume of their transactions.
The index will be called CIX 100, was designed from Cryptoindex.com and helps traders to monitor in real time the whole cryptocurrency market.
The innovative factor is the selection of the participated cryptocurrencies is made through an artificial intelligence algorithm, isolating cryptos with fake volumes and handmade biases in the index calculation. An approved cryptocurrency should be on the top 200 for at least 3 months.
The index is already being used from Reuters, Bloomberg and TradingView.