Crypto Price Index by Wintermute & The Block

[MrSpasybo]

Perhaps all crypto investors are familiar with indexes such as Total cap (BTC cap + ALTS cap), Total2 (ALTS cap), Total3 (ALTS cap - ETH cap), Stablecoin cap, BTC.D. These indexes have the advantage of giving us an overview of the development and distribution of the market in terms of capitalization, but they have noise associated with stablecoins and do not give us a clear view of market volatility. Clearly, we need more indexes for the crypto market similar to the DJIA or S&P500 for stocks.

A new crypto market price tracking index has been launched by Wintermute and The Block. This index, called GMCI 30, tracks the top 30 cryptocurrencies by market capitalization:

“GMCI indices are designed to bring transparency and simplicity to this quickly evolving asset class, tracking the performance of the entire industry as well as its sub-sectors is going to become incredibly simple^[1].”

GMCI 30 is calculated by taking the weighted average price of the 30 constituent assets. GMCI 30 does not include stablecoins and only includes assets listed on certain exchanges and custodians. The weighting is based on the market capitalization of each asset. The index is rebalanced quarterly.

I think the launch of GMCI 30 is a positive development for the crypto market. I hope it will provide investors and traders with more transparent and reliable data during market analysis. I really waited for the launch of this index on TradingView and started studying it carefully to detect the market behavior based on GMCI 30 chart. I hope that we will have a long enough history to refer to.

Do you think this GMCI 30 index is really valuable for the crypto market? Are you willing to use it to analyze the crypto market? Is there any conspiracy theory from Wintermute to manipulate the market through GMCI 30?
[1] Wintermute and The Block launch crypto price index

[Geey]

I don't understand what you are saying, an application or a market update adds features so that we can see market movements. If you add this feature to a market, it will be easier for everyone to see market movements and they can use this feature as their trading strategy.
I also agree with you sir, this is a positive development for the market and this launch is very good to use, hopefully in the future the market will provide more new features so that it is easier for traders to carry out transactions.

[MrSpasybo]

I don't understand what you are saying, an application or a market update adds features so that we can see market movements. If you add this feature to a market, it will be easier for everyone to see market movements and they can use this feature as their trading strategy.
I also agree with you sir, this is a positive development for the market and this launch is very good to use, hopefully in the future the market will provide more new features so that it is easier for traders to carry out transactions.

Well, as I stated, the GMCI 30 is a new crypto market index to show the current state of the market, if we believe that the top30 can represent the entire crypto market. I think it will have reference value, similar to how we refer to the DJIA & S&P500 to gauge the state of the US stock market, or the DXY to gauge the state of the dollar's strength.

We will wait for its official launch on TradingView to learn together and apply it to our crypto market analysis method in the future.

[Trongduy]

Well, as I stated, the GMCI 30 is a new crypto market index to show the current state of the market, if we believe that the top30 can represent the entire crypto market. I think it will have reference value, similar to how we refer to the DJIA & S&P500 to gauge the state of the US stock market, or the DXY to gauge the state of the dollar's strength.

We will wait for its official launch on TradingView to learn together and apply it to our crypto market analysis method in the future.

I think it will be useful like the VN30 in Vietnam, which is used to evaluate the top blue-chip stocks but also represents the entire Vietnamese stock market. Manipulation is probably not easy because everyone will look, and many other channels will also calculate to confirm the value of this index. If Wintermute manipulated, they would be discovered and lose all of their reputation. I think they only can use it to plan better manipulations in the future.

This index will be easier to see than BTC.DOM or TOTAL CAP, because it less disturbed by already large stable coins like USDT and USDC.

[MrSpasybo]

I think it will be useful like the VN30 in Vietnam, which is used to evaluate the top blue-chip stocks but also represents the entire Vietnamese stock market. Manipulation is probably not easy because everyone will look, and many other channels will also calculate to confirm the value of this index. If Wintermute manipulated, they would be discovered and lose all of their reputation. I think they only can use it to plan better manipulations in the future.

This index will be easier to see than BTC.DOM or TOTAL CAP, because it less disturbed by already large stable coins like USDT and USDC.

I also hope this index will be cleaner and less noisy than other indices such as Total cap or BTC.D because they include capital flows from Stable coins and are noisy during the assessment process. Although Stable coin is also a component of the market and helps money flow into this market, it will make the indexes more difficult to evaluate, investors will be confused in the evaluation process. The same is true for small-cap tokens whose price increases may not be representative of crypto market volatility.

In addition to GMI 30, I hope to have GMI 100 or GMI 1000 to help the community have a more comprehensive view of the crypto market in the next cycle. And this can also be the market exploration and steering tool that MM is providing us!