The Binance exchange is not specific about the rebalancing date of its CMC index

[Dr.Bitcoin_Strange]

According to the new product (Coinmarketcap Index) launched on 17/10/2022 by the Binance exchange, which will be available from November 2022.

Based on information from two articles from their source, they have not been specific about the date on which they believe each asset in the index is weighted and rebalanced.

first article:

Each asset in the index is equally weighted and rebalanced on a monthly basis,

every months, which is on a monthly bases.

second article:

The index is rebalanced on the last day of each calendar quarter. Index constituent weights are fixed on the selection date, which is five days prior to the rebalancing date.

refers to the calendar's first quarter, which runs from January to March.

what must users believe now?. 

[1714987789]

1714987789

[1714987789]

1714987789

[Apocollapse]

Is there anyone care about CMC index either top 10 cryptos or top 200 cryptos? actually the list on CMC is pointless since they only list based on the highest to lowest marketcap while marketcap is calculated by price and supply, whales can easily manipulate a shitcoin by invest large portion of money to bump the rank into top 200 or top 10.

The funny thing here Binance offering "auto invest plan for diversified recurring crypto purchases" while we're know diversify to other cryptocurrencies especially shitcoins is a stupid idea. If you want to diversify, look for other assets e.g. gold, stock etc.

[Rikafip]

Based on information from two articles from their source, they have not been specific about the date on which they believe each asset in the index is weighted and rebalanced

Each asset is rebalanced on the monthly basis while index itself on the quarterly basis so I am not sure what's the problem here.

Is there anyone care about CMC index either top 10 cryptos or top 200 cryptos?

Loads of newbies use CMC every day to determine what to buy, and where to buy from so I expect this new thing to be popular among them as well. After all, that's their target audience and there's no lack of those.

actually the list on CMC is pointless since they only list based on the highest to lowest marketcap while marketcap is calculated by price and supply, whales can easily manipulate a shitcoin by invest large portion of money to bump the rank into top 200 or top 10.

Even though I don't use CMC (I prefer Coingecko) because there's a lot of manipulation and misinformation going there, they occasionally remove suspicious assets from their top rankings, like they did with that HEX]https://coinmarketcap.com/currencies/hex/]HEX shitcoin, that is in top 200 while it should be in top ~15-20 judging by their mcap. On the other hand, Coingecko doesn't even rank those kind of shitcoins so its another reason why I prefer them. Crazy thing about CMC is that it used to be even worse before Binance took them over.

The funny thing here Binance offering "auto invest plan for diversified recurring crypto purchases" while we're know diversify to other cryptocurrencies especially shitcoins is a stupid idea. If you want to diversify, look for other assets e.g. gold, stock etc.

Yep, one of the most popular misconceptions in crypto is that diversification means investing in other shitcoins, like they are not directly dependent on bitcoin.



 

[hugeblack]

Leaving conflicting definitions that are the basis for manipulation of the market ( which CMC will do,) but personally I think that the indicator will be based on its balance on a monthly basis because the quarter annually is not meaningful, especially since the more we go deeper into +100 cryptos, the more misleading the indicator.

Generally, bitcoin and ETH will have the greatest influence and therefore there is no meaning to the index for more than 50 cryptocurrencies.

[Pmalek]

I think Rikafip's explanation makes sense. But to be 100% sure, why don't you contact them and ask them directly? Binance even offers live customer support, but you need to go through their automated suggestions before you are given a chance to talk to an official support representative. Alternatively, you can email them. They should be more inclined to answer faster if they believe you are a serious customer looking to use their services with a good sum of money.

[Dr.Bitcoin_Strange]

Each asset is rebalanced on the monthly basis while index itself on the quarterly basis so I am not sure what's the problem here.

This answer was helpful. I never seem to understand it that way. But with the explanation you gave, I now know that each asset is rebalanced on a monthly basis while the index is quarterly. Thanks, that was helpful.

Is there anyone care about CMC index either top 10 cryptos or top 200 cryptos?

It's not as if I care about the CMC index, but just wanted to get a better understanding of the question asked by Bitcoin_Arena in one of the threads I visited, quoted below. I just hope he finds this and gets the answers he expected to get here, as well as a298b112.

But the link shared by jackg suggests that re-balancing will be done Quarterly

[Rikafip]

This answer was helpful. I never seem to understand it that way. But with the explanation you gave, I now know that each asset is rebalanced on a monthly basis while the index is quarterly. Thanks, that was helpful.

Np buddy, glad to be of some help but that's just my understanding. Who knows, maybe I got it wrong too so if you want to be 100% sure you can contact Binance or maybe ask in their Telegram group.

I just hope he finds this and gets the answers he expected to get here, as well as a298b112.

Well you can always go over there in the topic where he asked that question and answer him (in case he doesn't use Telegram notification bot).

[Dr.Bitcoin_Strange]

~snip~

Yes, I just updated Him on the thread.