Dark Street 50 Cryptocurrency Index is here - Now What
Dark Street 50 is here and I was happy to see that it is already getting noticed. I have received a few questions on what my plan is to do with this newly minted Index. I feel like I have a new car and am out cruising around the neighborhood. For a stuffy academic this is exciting stuff.
Lets answer some questions:
What is the Dark Street 50?
The Dark Street 50 is an annually fixed unit Index of Cryptocurrencies designed to capture the overall movement of the cryptocurrency market by focusing on the currencies selected and weighted by the Berkeland Villecco Allocation Method.
Why was the Dark Street 50 Created?
The cryptocurrency market is often measured simply by the measurement of bitcoin. When looking at the market cap of the Dark Street 50 you can see that Bitcoin constitutes 38% of the currencies in the Index. This means that while Bitcoin is still the major player but there are a growing number of currencies that are effecting the market. As the market is matures and grows with new technology and currencies entering the fold it is necessary to create other benchmarks beyond simply Bitcoin.
By building an index that is designed with the hope of capturing the movements of the 50 most meaningful cryptocurrencies economists can better understand the movements of the overall market.
The Dark Street 50 also provides a meaningful point in time to look at the ratio of a Cryptocurrency's market cap to that of the overall index. These comparisons can help tell the story of what is happening in the market, and how it is changing overtime.
Can the Dark Street 50 be used by Investors?
The Dark Street 50 was designed for primarily for academic and economic analysis of the Cryptocurrency market.
Technically an investor could build the Dark Street 50 on their own by matching the weightings and selections of the Berkeland Villecco Allocation Method. There are however currently no known Index Funds or ETFs following the Dark Street 50 (As of Feb 7, 2018).
What is the Berkeland Villecco Allocation Methodology
The Berkeland Villecco Method is a set series of parameters to designed with the hope of capturing the most meaningful Crypocurrencies. The Methodology includes an annual rebalancing date of Feb 6 in which Selected CryptoCurrencies may change and new Weightings applied to the underlying currencies. The Selected Cryptocurrencies will be decided upon and weighted at the Final5Selection Meeting to occur every Feb 5. The rebalanced index will then go live on the 6th.
It was named after the founders of the method who drew up the primary premises of the method with the hope of capturing a full picture of the Cryptocurrency Market. The Premises were provided to Dark Street and utilized to create the Dark Street 50 on Feb 6, 2018. The premises present both ways to educate and to highlight cryptocurrency activity.
Where Can I find the fixed units used in the Dark Street 50:
The initial units are posted on the link below:
Dark Street 50 Unit Breakdown and Initial Weightings
Date of next Final 5 Meeting:
Feb 5, 2019
Where will the Final 5 Meeting Occur?
The Dark Street Bloggers will plan the Meeting to occur at a location in Denver, Colorado on Feb 5. That location has not been decided for the upcoming year.
How can I attend the Final 5 Selection Meeting
Every Feb 5 will house a large meeting of crypto enthusiasts to see which currencies are selected to make up the Index. The first 45 will be selected early in the day with one of the Final 5 announced each hour from 7 pm on. A Crypto Currencies on the Bubble list will be released at noon that will go through the merits of 20 potential candidates for the final 5 spots. The meetings rules of selection are built into the premises of the Berkeland Villlecco Allocation Methodology.
Instructions for obtaining an invitation to the meeting will be posted as the date approaches.
What should I expect in the future for the Dark Street 50
The Dark Street 50's future is very bright. Ironically it is a tool to shed light on a market that few people still understand and hopefully it will be used to educate all parties on the cryptocurrency markets from those who are investors, skeptics, academics, and even regulatory parties. We will post regular updates on the Dark Street 50, and various analysis using it to compare changes in the cryptocurrency market.
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