FIDELIS Crypto Index

FIDELIS Fintech created a cryptocurrency index similar to those presented for several decades, based on the marketcaps of companies listed on stock exchanges, such as DJIA, SP500 and Nasdaq, among others.

Indexes generally reflect the joint behavior of a basket of assets and take into account the price of the asset and the quantity supplied to the market.

The multiplication of the asset price times the quantity that is supplied is what is known as Marketcap.

In the case of the FIDELIS Index, the initial basket is composed, in principle, of the twenty cryptocurrencies with the highest marketcap according to Coingecko (coingecko.com) with the exception of stablecoins (Stablecoins) and those that follow the price of other currencies such as WBTC (Wrapped Bitcoin) and STETH (Staked Ether). The exclusion of these cryptocurrencies is because their stability (known as PEG) is manipulated and does not follow the same supply and demand rules as other currencies are subject to.

We will call this coin basket the adjusted TOP20 or simply TOP20a.

The coins that make up the initial TOP20a are: BTC, ETH, BNB, ADA, XRP, SOL, DOGE, DOT, SHIB, MATIC, TRX, AVAX, LEO, OKB, LTC, FTT, ETC, CRO, UNI, LINK.

Currently, this basket of coins represents approximately 80% of the marketcap of the global cryptocurrency market (source: Coingecko.com).

The chosen currency basket will be evaluated between three and six months and the currencies that left the TOP20a will be exchanged for those that entered this ranking. The necessary adjustments will be made to avoid distortions in the index when evaluating the new TOP20a.

In the future, the FCI may incorporate a basket with a greater or lesser number of currencies.

While every index is a simplification of market behavior, we believe it is important for investors in the crypto world to have this tool to assess the direction the market is following at the time of reading, or to check its evolution over time.

The FIDELIS Crypto Index (FCI) is calculated as follows: we set the initial date and time of July 28, 2022 at 00:00 (UTC) to observe the joint marketcap of the TOP20a, that is, the sum of the marketcaps of the cryptocurrencies chosen in the TOP20a.

The FCI for this initial marketcap (USD 801,375,376,858.00) is set at 100.

Periodically, a new joint marketcap is generated.

The index for moment m will be calculated like this:

FCIm = (MPCm / MPCo) *100

Being,

MPCm the combined marketcap of the TOP20a coins at the moment m and

MPCo the joint markecap of the TOP20a coins at the initial moment.

The FCI will be displayed to two significant decimal places.

FIDELIS Fintech will also present on its website fidelis.exchange, in addition to the FCI, the daily variation of the FCI in percentage points.

The FCI index and the daily variation of the index will be continuously updated periodically.

We hope that this contribution from FIDELIS Fintech will be another tool to help traders and investors in the interpretation of the cryptocurrency market.