Binance launches Top 10 equal-weighted crypto index
Prominent crypto exchange seeks to expand services despite Crypto Winter
The cryptocurrency exchange Binance has announced that it will launch its first index product as it prepares to introduce the Binance CoinMarketCap Index Series.
The Top 10 Equal-Weighted Index will monitor the performance of the ten largest cryptocurrencies by market capitalisation.
The index will be denominated in USD and each asset included in the index will be equally weighted and rebalanced on a monthly basis. The company said it “will refer to this index, as well as other indices that will be launched in the near future, when launching new Binance products in the future.”
Users and consumers will be able to purchase crypto assets in the new index through Auto-Invest, a feature allowing users to automate purchases through dollar-cost-averaging (DCA), which will be available from next month.
Binance completes substantial BNB burn
The announcement comes a week after Binance completed its 21st quarterly BNB burn. The company destroyed more than two million BNB tokens worth around $550m in value. It has pledged to burn BNB every quarter until 100 million tokens are destroyed and the total supply is reduced to 100 million BNB.
The effort to reduce circulation is partly driven by a desire to bolster the value of BNB. Despite this, BNB has fallen by 2.3% in the past month and trades 48% lower since the start of the year, as a result of the “crypto Winter”.
At the height of market volatility in June, Binance’s CEO, Changpeng Zhao, said: “It’s not the first time we’ve gone through a crypto winter. If we are in a crypto winter, it would be my third and Binance's second. So it's not the first time we’ve been through this.”
Despite the substantial reduction in crypto valuations, Binance has sought to develop its services and broaden its user base.
In an effort to bolster the beleaguered crypto mining sector, the company recently launched a $500m lending project to support miners and digital infrastructure providers.