1. TaiFu™ 30 Cryptocurrency Market Index
- All cryptocurrencies are sorted in order by its 90 Day Average Market Cap to remove the potential of a manipulated or artificially inflated market cap.
- All cryptocurrencies are sorted in order by its 90 Day Average Trading Volume to remove the potential of a manipulated or artificially inflated trading volume.
- Remove the following coins:
- Coins with <90 data points because we do not know if the coin is a scam or not so they need at least 90 days of trading activity to be eligible. This also prevents coins from manipulating their coins to get into the index.
- Stablecoins because they do not go up in value.
- Exchange Tokens because they are not accessible to both eastern/western traders/investors.
- Any coins that do not have “reasonable access” to both eastern/western traders.
- Sort the remaining 90 day market cap average list from largest to smallest and assign a rank to them as follows:
#1 = 1st largest 90 Day Average Market Cap.
#2 = 2nd largest 90 Day Average Market Cap.
#3 = 3rd largest 90 Day Average Market Cap…
- Remove any coins that do not have a hardware wallet support on the day of re-balance because they are not eligible and select the top 30 coins.
- Add up all the 90 Day Average Market Caps of the top 30 coins to get the denominator (Total Market Cap).
- Calculate the coin’s percentage of Total Market Cap by dividing the coin’s 90 Day Average Market Cap with the market cap denominator (Total Market Cap).
- Determine the amount of coins in the index using the allocation calculated previously.
- The index’s Initial Value = 100.
- The index is re-balanced the 1st day of every quarter using the closing index value of the last day of the previous quarter.
- Multiply the Initial Value (100) with the Percentage Allocation for that coin to determine the Amount.
- Divide the Amount by the July 1, 2017 Opening Price of the coin to determine the Quantity.
- Add any coins that were born due to hard forks, air drops, etc. It is possible to have 31 total coins in the index when a hard fork situation like Bitcoin Cash occurs. However the 31 coins will go back down to 30 coins at the next quarterly re-balance.
- Calculate the values for the index based on quantities.
- Re-balance every quarter.
- NOTE: The order and type of coins in the top 30 can vary slightly depending on the source of the data.
- You can monitor the progress of TaiFu™ 30 Cryptocurrency Market Index by clicking on the name of the index in the TaiFu™ Portfolio Manager.
2. TaiFu™ 30 Altcoin Market Index
- Remove Bitcoin.
- The rest of the TaiFu™ 30 Altcoin Market Index is calculated in the same manner as the TaiFu™ 30 Cryptocurrency Market Index.
- Considerations to sunset the TaiFu™ 30 Altcoin Market Index and combine it with the TaiFu™ 30 Cryptocurrency Market Index will occur after any altcoin’s market cap surpasses bitcoin’s market cap for more than 90 days.
- You can monitor the progress of TaiFu™ 30 Altcoin Market Index by clicking on the name of the index in the TaiFu™ Portfolio Manager.
3. Tone Vays Scam Coin Portfolio
- The amount of $100 is put into every coin on the day that the crypto influencer, Tone Vays, calls a scam on his YouTube Cryptoscam podcast.
4. U.S. Corona Virus Stimulus Portfolio
- In 2020, the USA was completely shut down for several months due to the fear of Covid-19.
- To help stimulate the US economy, the US Department of the Treasury gave assistance to American workers and families via the CARES Act:
“The CARES Act provides for Economic Impact Payments to American households of up to $1,200 per adult for individuals whose income was less than $99,000 ( or $198,000 for joint filers) and $500 per child under 17 years old – or up to $3,400 for a family of four.”
- Around April 15, 2020, individuals received $1,200 and married couples received $2,400 from the US government.
- The U.S. Corona Virus Stimulus Portfolio is a case study in which the TaiFu™ team will use an initial investment of $2,400 to create a portfolio that attempts to replicate the results of the TaiFu™ 30 Altcoin Market Index.
- You can monitor the progress of U.S. Corona Virus Stimulus Portfolio by clicking on the name of the portfolio in the TaiFu™ Portfolio Manager.
- You can learn how to create the U.S. Corona Virus Stimulus Portfolio here.
- WARNING: The U.S. Corona Virus Stimulus Portfolio is created with real funds and to be viewed as a case study for illustrative and educational purposes only and NOT to be considered as financial advice. Please consult with a licensed professional for all your financial needs because NO ONE on the TaiFu™ team are licensed financial advisors or professionals in any country.