Mining giant Bitmain has announced a brand new cryptocurrency index

Another big firm is looking to bring confidence to the cryptocurrency marketplace…

Already today, we’ve reported the news that Binance is introducing a ‘gold label’ badge for cryptocurrency and blockchain projects. The idea is to offset the negativity and distrust that’s prevalent amongst some investors, and to give them some extra assurances.

Now comes the news that cryptocurrency mining giant Bitmain is also trying to do something with similar aims, as it launches its new price index.

The idea behind it is that it’s been “developed to provide institutional and retail investors with a transparent, timely, methodology-based, and investable benchmark of the most active cryptocurrencies traded globally, denominated in USD”.

That’s as per the official methodology document that Bitmain has released, that you can download for yourself here.

The document further explains that Bitmain will be publishing two different styles of price in its index. One will be real time, that will be updated every second of the day. The other is going to a once-a-day snapshot, that’ll be taken at 10am. That’s 10am going by Hong Kong time. The form of the index will also be reviewed every month, to ensure it’s still relevant.

Bitmain is sourcing its pricing data – that’ll cover the top 17 currencies – from a collection of exchanges. There’s then a fair bit of maths involved in coming up with the overall numbers, and again, that’s explained in the methodology document.

Whether this step helps to increase confidence in the marketplace remains to be seen. But it’s encouraging that big players in the market aren’t sitting by and doing nothing…

Image: BigStock