Crescent Launches 3 New Crypto Indices

Crescent Crypto
Jun 20 · 8 min read

Launch of 3 new Indices

The three new indices — CCALT, CCSMART, CCDARK — expand the Crescent Crypto Index Family and are an effort to benchmark some of the most exciting themes in the digital asset ecosystem. All Crescent Crypto Indices are published in real-time to our website and outlets like Bloomberg and Reuters enabling digital asset investors to monitor the returns of emerging use-cases in the space. The describes the index methodology which governs all of our Indices.

Crescent Crypto Alt Index (CCALT)

The Crescent Crypto Alt Index (CCALT) is a rules-based cryptocurrency market index that is designed to measure the performance of the largest and most liquid cryptocurrencies, excluding Bitcoin.

Crescent Crypto Smart Contract Platform Index (CCSMART)

The Crescent Crypto Smart Contract Platform Index (CCSMART) is a rules-based cryptocurrency sector index that is designed to measure the performance of a market cap weighted basket of cryptocurrencies which are classified as smart contract platforms.

Crescent Crypto Anonymity Index (CCDARK)

The Crescent Crypto Anonymity Index (CCDARK) is a rules-based cryptocurrency sector index that is designed to measure the performance of a market capitalization weighted basket of privacy and anonymity cryptocurrencies.

Weekly Market Recap

June 20 — Crypto assets rose 9.1% this week ($24 billion), bringing the total market cap back just shy of $290 billion. The Crescent Crypto Market Index () gained 9.9% while BTC rose 14.3% over the same period.

The crypto market saw another week of strong gains, led largely by bitcoin. Alternative crypto assets followed suit in the first half of the week, but performance stagnated for the group as attention was drawn to BTC. The total value of the crypto market has appreciated more than 120% year-to-date and continues to be led by larger valued names. This past week, bitcoin outperformed many of its large peers as it gained nearly 15%. It is currently trading around $9,320.

Bitcoin vs. CCMIX

June 13th — June 20th, 2019

Crescent Crypto Market Index (CCMIX)

Constituent Performance

June 13th — June 20th, 2019

Sector Performance

Bitcoin vs. CCALT

June 13th — June 20th, 2019

Bitcoin vs. CCSMART

June 13th — June 20th, 2019

Bitcoin vs. CCDARK

June 13th — June 20th, 2019

Summary

  • Bitcoin was king yet again this week, gaining nearly 15% compared to 9% for the overall crypto market.
  • XMR was the only other constituent in the Crescent Crypto Market Index to post double digit gains (11%). It was the largest contributor to the CCDARK Index’s outperformance compared to other sectors this week.
  • The largest smart contract platform assets (ETH & EOS) rose roughly 4% each, but the rest of the sector dragged on the CCSMART.
  • ADA, XLM, and ONT saw the biggest losses this week, falling 3.9%, 3.8%, and 3.2%, respectively.
  • XRP reversed course this week, jumping from the worst performer to third best this week (5.7%).
  • BTC outperformed its peers, on average, gaining 14.3% compared to this time last week.
  • BTC dominance rose substantially from 55.1% of the total crypto market cap this time last week to 57.5% today.

Notable News

What Happened?

This Tuesday Facebook unveiled its new venture into cryptocurrency, including a low volatility currency backed by a reserve of various assets, Libra, a Libra investment Token, a new Facebook subsidiary, Calibra, and an Independent consortium, Libra Association. Some of the founding members of the Libra Association include Visa, Mastercard, Stripe, Paypal, Lyft, Uber, Coinbase and eBay. Andreessen Horowitz, Ribbit Capital, and Union Square Venture make up a few of the big-name investors joining the association. The Libra Association, based in Geneva, aims to serve billions of people with an emphasis on banking the unbanked. Libra will initially start out as a pemissioned blockchain with plans to decentralize and become permissionless in the future. Unknown before this announcement is the introduction of the libra association’s security token called Libra Investment Token, This Security token functions as a way to fund incentive programs and cover operating costs of the network. To a run a node on the network, enterprises must make an initial minimum investment of $10 million worth of Libra Investment Tokens and are expected to incur an annual cost of around $2800,000.

Why Does This Matter?

Libra is indicative of how far the cryptocurrency industry has come, with some of the largest companies launching their own cryptocurrencies (JP Morgan, and now Facebook). Libra has the potential to be the single largest bridge towards decentralized finance, even greater than that of Coinbase. Libra is backed by a basket of assets, not just USD, as a result, Libra has the potential to displace many government fiat currencies. Countries that have tried dollarization, can now do so via Libra with greater ease. Libra has the chance to allow millions of people to avoid middlemen fees and increase their wealth and financial sovereignty. For the staunch Bitcoin bugs, Libra inches billions of new users closer to bitcoin. As David Marcus puts it, “Many want to pit Libra vs. Bitcoin. In my mind, these two are not in the same category. BTC is a decorrelated (investment) asset. Libra is designed to be a stable medium-of-exchange. I have been, and remain a fan of BTC, but for very different purposes.”

What Happened?

Binance announced that it plans to launch a US Exchange with a FinCEN-Registered partner. The world’s largest cryptocurrency exchange by volume is finally opening a U.S division. In partnership with BAM Trading Services, this new trading platform will be operated by BAM while using Binance wallet and matching engine technology. This move signals Binance’s first formal entry into the U.S market (U.S traders are currently able to trade on Binance). Binance CEO Changpeng Zhao said, “we are excited to finally launch Binance US and bring the security, speed, and liquidity of Binance.com to North America.” This move coincides with Binance’s announcement to launch a Bitcoin-pegged token on Binance Chain. This pegged token will be backed by Binance’s reserves and they see it as a way to offer more trading options for Binance users.

Why Does This Matter?

Binance’s formal move into the U.S market has the potential to significantly shake up the crypto exchange landscape. Binance is already the most popular exchange by volume, and it will be interesting if this new U.S exchange will pull traders and liquidity from other U.S based exchanges. Many see this move as bullish for Bitcoin and Ethereum, and not necessarily bullish for other alt-coins as U.S customers will most likely have a less variety of alt coins to trade in and out of due to U.S regulation. In regards to the BTCB pegged token, CZ stated “while this approach is more centralized than atomic swaps, we believe it provides a higher degree of ease-of-use to most traders. And most traders are already trusting Binance.com to hold their funds anyway.”

What Happened?

On Monday, Ripple announced a major partnership with MoneyGram. The money transfer service will use Ripple’s XRP currency as part of its daily operations. Ripple will pay $4.1 cents a share to acquire an 8% to 10% stake in MoneyGram, which translates to a $30 million investment. This agreement also gives MoneyGram an option for another $20 million cash infusion within two years. This investment comes around a year after Western Union ended a trial experiment with X-Rapid, stating that X-Rapid produced an insignificant amount of savings. This announcement also comes 18 months after the U.S. government barred China-based Ant Financial from acquiring MoneyGram.

Why Does This Matter?

While overshadowed by the Facebook Libra news, Ripple continues to make strides on the money transfer service space. This acquisition offers an unprecedented opportunity to showcase its product X-Rapid as the de facto method in moving money across borders. Ripple CEO Brad Garlinghouse told Fortune, “this will eliminate the need to deploy foreign bank accounts. That’s why MoneyGram has negative working capital. It will help customers and also smooth out their treasury operations.” The MoneyGram investment offers an opportunity for Ripple to strengthen its finances after several poor earnings reports. For MoneyGram, Larry Angelilli, the chief financial officer of MoneyGram, states “we are very pleased with the terms of the Ripple investment which supports the Company with permanent capital and additional liquidity.”

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