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The Crypto Rupee Index – CoinSwitch (CRE8)

CoinSwitch has launched the Crypto Rupee Index (CRE8). It is India’s first benchmark index to measure the performance of the Indian Rupee-based crypto market.

It is owned and administered by CoinSwitch. CRE8 tracks the performance of eight crypto assets that represent over 85% of the total market capitalization of cryptos traded in the Indian rupee. This index is mainly based on real trades on the CoinSwitch app, which has over 18 million registered users.

It was founded in 2017 as a single window to purchase crypto from global exchanges, and then CoinSwitch expanded to rupee-crypto trading in June 2020.

Valued at $1.9 billion, Coinbase Ventures, Tiger Global, Sequoia Capital, Ribbit Capital, and Paradigm which is backed by blue-chip investors, including Andreessen Horowitz (a16z).
Notably, CryptoWire March launched India’s first crypto index, IC15, which tracks the market capitalization and liquidity of the top 15 global digital currencies in dollar terms.

Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Ripple (XRP), Cardano (ADA), Solana (SOL), Polkadot (DOT) and Dogecoin (DOGE) are some of the constituents of the index.

The Crypto Rupee Index is a first in the Indian market, which has previously had to “rely on the international indices based on the US Dollar,” tweeted CEO and co-founder Ashish Singhal of CoinSwitch Kuber. Moreover, he also added that “These indices do not give the true picture of the indian market and miss the supply-demand dynamics of India’s growing investor base.”
The CRE8 index is calculated on the weighted market capitalization (square root) methodology. These are the three important points to notice.

• CRE8 tracks the performance of eight crypto assets that represent over 85% of the total market capitalization of cryptos traded in the Indian Rupee.

• CRE8 includes the top eight crypto-assets like Bitcoin, Ethereum, Ripple, Binance coin, and Cardano by market cap in its index composition.

• Crypto Rupee Index (CRE8) provides a trustworthy, real-time view of the Indian Rupee-denominated Crypto market based on actual trades that will help in enabling Indian users to make informed investment decisions.

There are three basic criteria that will be used for indexing

• Listed and Trading: The crypto asset needs to have traded for at least 6 months on CoinSwitch’s platform.

• Currency: They must be available for trading in INR (Indin Rupees) on the CoinSwitch platform.

• Liquidity: The crypto asset should have a minimum daily trading value of Rs 5,00,000 for each day during the last three months.

“CRE8 is a demonstration of our commitment to bring more transparency to the Crypto market and equip users with a simple, easy-to-understand measure of the Indian market. The index provides a trustworthy, real-time view of the Indian rupee-denominated Crypto market based on actual trades, enabling Indian users to make informed investment decisions,” said Ashish Singhal, co-founder and chief executive officer, CoinSwitch.

One important point to notice here is that these indices, however, do not provide a true picture of the Indian market. This is because they do not take into account the demand and supply specific to the Indian rupee-based market, nor the INR exchange rate.

Key point about the Crypto Rupee Index

• Based on actual deals, the index provides a trustworthy, real-time perspective of the Indian Rupee-denominated Crypto market.

• CRE8 is distinct from other crypto indices. It was created with Indian crypto investors in mind. The majority of crypto indices are currently US-based. So, they do not represent onshore pricing in India.

• India’s crypto market, according to Coinswitch, is influenced by a variety of factors, including domestic demand and supply, global prices, and INR exchange rates.

The index will be rebalanced monthly and reconstituted every quarter to keep it up to date with the market.

The Crypto Rupee Index is a first in the Indian market, which has previously had to “rely on the international indices based on the US Dollar,” tweeted CEO and co-founder Ashish Singhal of CoinSwitch Kuber, he added “These indices do not give the true picture of the indian market and miss the supply-demand dynamics of India’s growing investor base.”

“The index fills a market gap: Previously, Indian users had to rely on international indices denominated primarily in US dollars to analyze the market,” Ashish Singhal, co-founder and CEO of CoinSwitch, told Blockworks. 

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