Index methodology

Market indices gives a better overview of the marker condition than a single asset

Coin indices

We suggest three following indices* for investors to better understand overall market sentiment and current trends:

  1. USD Index MG50 (Top50 crypto assets)

  2. BTC Index ALT50 (Top50 crypto assets, excluding BTC)

  3. BTC Index TOK50 (Top50 crypto tokens)

* All indices are price-return market-capitalisation weighted.

Index methodology

The following coins are not accepted as index constituents:

  1. Those pegged to a fiat currency or so called stable coins (e.g. Tether)

  2. Those functioning less than 3 months after the first listing

A Coin Index is calculated using the following construction methodology, which is similar to the methodology used for the S&P 500 Index:

Index(t)=i=1NPt,iQt,iDtIndex(t) = \sum\limits^{N}_{i=1} \frac{P_{t,i} * Q_{t,i}}{D_t}

where:

  • N is the total number of assets

  • P is the price of asset i at time t

  • Q is Circulating Supply of asset i at time t

  • D is the value of divisor at time t

If MG50 closes at 200 and one asset is replaced with another after hours, the index should have the same value of 200 immediately after update. This is accomplished with an adjustment to the divisor D.

Any change to the assets in the index that alters the total market value of the index while holding asset prices constant will require a divisor adjustment:

D(t)=Dt1MVtMVt1D(t) = \frac{D_{t-1} * MV_t}{MV_{t-1}}

where:

  • t-1 is the moment right before an old asset is removed from and a new asset is added to the index

  • t is the moment right after the event