The South Korea’s second largest crypto exchange Upbit plans to launch a new cryptocurrency index called UBCI (Upbit Crypto Index). The concept will provide a standard index which can measure market conditions by suggesting and creating a coin quote standard.
The company also plans to expand the business so that the index can be used on international markets. There is often a difference between cryptocurrency prices on domestic and international markets due to local demand. The country is leader in crypto trading and the developments in South Korea often has wider implications across the rest of the world.
The new index will function by collecting long term transaction and trade data from the exchange and using it to create a standard value in confidence levels. Four indexes will be developed: a Market Index, Sector Index, Bitcoin Index, and a Strategy Index. The Market, Sector, and Bitcoin indexes will be launched in April, and Upbit will launch the Strategy Index later in the year.
Lee Seok-woo, the president of Dunamu told local media:
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.
According to CoinMarketCap, Upbit currently handles $732 million (86,700 BTC) per day. Recently, it has added a number of new altcoins to its listings, including Icon and Tron, and is the country’s second largest exchange after Bithumb.