Methodology

(Updated 2021-01-01)

1.  TaiFu™ 30 Cryptocurrency Market Index

  1. 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.
  2. 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. 
  3. Remove the following coins:
    1. 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.
    2. Stablecoins because they do not go up in value.
    3. Exchange Tokens because they are not accessible to both eastern/western traders/investors.
    4. Any coins that do not have “reasonable access” to both eastern/western traders.
  4. 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…
  5. 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.
  6. Add up all the 90 Day Average Market Caps of the top 30 coins to get the denominator (Total Market Cap).
  7. 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).
  8. Determine the amount of coins in the index using the allocation calculated previously.
  9. The index’s Initial Value = 100.
  10. The index is re-balanced the 1st day of every quarter using the closing index value of the last day of the previous quarter.
  11. Multiply the Initial Value (100) with the Percentage Allocation for that coin to determine the Amount.
  12. Divide the Amount by the July 1, 2017 Opening Price of the coin to determine the Quantity.
  13. 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.
  14. Calculate the values for the index based on quantities.
  15. Re-balance every quarter.
  16. NOTE:  The order and type of coins in the top 30 can vary slightly depending on the source of the data.
  17. 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

  1. Remove Bitcoin.
  2. The rest of the TaiFu™ 30 Altcoin Market Index is calculated in the same manner as the TaiFu™ 30 Cryptocurrency Market Index.
  3. 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.
  4. 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

  1. 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

  1. In 2020, the USA was completely shut down for several months due to the fear of Covid-19. 
  2. 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.”

  3. Around April 15, 2020, individuals received $1,200 and married couples received $2,400 from the US government.
  4. 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.
  5. 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.
  6. You can learn how to create the U.S. Corona Virus Stimulus Portfolio here.
  7. 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.