ICONOMI Cryptocurrencies Index (ICNX) 21 December 2016 Rebalancing + transformation into ICONOMI.index investment token
During December market demand has kept Bitcoin prices steadily growing. This was in line with last year’s behaviour, and mostly supported by Asian buyers. On the other hand, Ether continued to show weaknesses. Although the price bounced from a low of 0.0076 BTC and stabilised at around 0.009 BTC per 1 ETH, this is more than 50% down from October levels.
With rebalancing, we re-set the weights of included cryptoassets, but as per ICNX methodology we have also changed ICNX composition. We have added Augur (REP) and Zcash (ZEC) tokens and removed Synereo (AMP), Waves (WAVES) and Siacoin (SC).
Listening to community feedback, we have also decided to implement an important change to the ICNX rules, namely increasing the maximum weight of a particular token to 25%. Raising the maximum weight of a particular index currency from 20% to 25% will enable the index to more easily realise high returns of rapidly growing currencies during rebalancing periods and on the other hand still retain a diversified and defensive portfolio which limits index volatility.
This is the new ICNX composition from 21 December 2016:
What was removed
We have removed Waves (WAVES) and Siacoin (SC), as their daily average volumes for the last 30 days were below $50k. They can return, once their monthly volumes rise above the minimum threshold, and if ICONOMI still considers them viable in the long term.
We have also removed Synereo (AMP). With less than 9% of all tokens available to the marketplace, it was obviously violating our rules. Additionally, a recent internal struggle helped change our perception of its long-term viability.
What was added
We have added Augur (REP) and Zcash (ZEC) to the ICNX. Both are widely known and we believe no introduction is necessary.
TRANSFORMATION OF ICNX TO ICONOMI.index investment token
We recently announced that public availability of our ICONOMI.index token starts on 28 December 2016. It will be based on ICNX, from which it will also inherit all the rules and methodology.
We are, however, transforming the ICONOMI cryptocurrency index (ICNX) to ICONOMI.index token today, on December 21st, as the first community members will get early access to the platform in a short time, and will be able to buy into the token. This is also the reason for an earlier December rebalancing of ICNX.
With the transformation to ICONOMI.index, ICNX will cease to exist. A live chart of ICONOMI.index will soon appear on our platform, one that will show its real performance. Therefore, immediately after the publication of this blogpost we are removing ICNX’s webpage (https://icnx.iconomi.net), so that its simulated performance since 1 July, 2016 will not confuse anyone.