The non-fungible token (NFT) space continues to evolve and flourish. Today sees the launch of a new tool, called the Metaverse Index (MVI), to help track these NFTs.

The new Metaverse Index will follow the leading tokens and projects in the NFT and virtual metaverse space. It has been launched by Index Coop, a DAO specializing in creating crypto-economy index tokens.

In the early years, cryptocurrency indexes like C20 gave investors broad exposure to the top-performing assets in the industry. Then came the DeFi indexes such as the DeFi Pulse DPI which did the same for DeFi-related tokens.

Read Also:   Ninepoint Partners Sees Canadian IPO Completed And Fully Invested By Day 1

Now the first NFT-focused index has been launched. It aims to provide exposure to the top assets in the burgeoning digital art, collectibles, and virtual metaverse scene.

MVI launches on TokenSets

The MVI launched on the Tokensets platform. It uses Set Protocol smart contracts with 15 metaverse and NFT tokens listed. These include Enjin Coin, Decentraland, SAND, Axie Infinity, RedFOX Labs, and a number of others.

Each month, it analyzes factors like liquidity, market cap, and a number of other determinants, before rebalancing. ENJ currently has almost 20% exposure while MANA is second with just under 12%.

It also launched with liquidity mining incentives. It offers stakers of the new MVI/ETH pool LP tokens that receive INDEX rewards during a 90-day program. These tokens are from the Index Cooperative and different from the MVI tokens which are for the index itself.

NFT token screening and weighting

Speaking to William Peaster in the April 8 Bankless newsletter, co-authors and managers, Dark Forest Capital and Verto0912, explained the weighting and screening processes for token inclusion.

Screening is done by Coingecko category for Non-Fungible Tokens, Entertainment, Virtual Reality, Augmented Reality, and Music. The tokens need to be ERC-20, have a circulating market cap above $30 million, and have sufficient liquidity on decentralized exchanges.

“The MVI uses a combination of square root of market capitalisation and liquidity weighting to arrive at the final index weights. We believe that liquidity is an important consideration.”

Since the MVI holds all of these NFT-related tokens, the project will work on finding a way to create utility in these underlying ecosystems.

At the time of press, the MVI token was trading at $100. It has begun to settle over the past three days after falling from the $150 it reached just after launch. INDEX prices also dropped 4% to $41.40 according to CoinGecko.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.


Download MAXBIT Android App, Your best source of all crypto news!
Google Play

Source link


NFT Tracking Metaverse Index (MVI) Launched by Index Coop

by Douglas Smith
Choose A Format
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format