How Does Metaverse Index (MVI) Work?
MVI provides investors with exposure to a diversified portfolio of metaverse-related tokens. By holding MVI, investors can gain exposure to various projects and companies that are driving the development of the metaverse. This allows individuals to participate in the growth potential of the metaverse industry without the need to individually research and invest in multiple tokens.
The index is maintained by a team of analysts and developers. They are responsible for collecting data, analyzing trends, and making decisions about which projects should be included in this MVI index.
Here are some of the factors that Index Coop considers when rebalancing the MVI:
- Market capitalization: The market capitalization of a token is the total value of all the tokens that have been issued. Index Coop wants to make sure that the MVI is diversified, so it looks for tokens with a variety of market capitalizations.
- Liquidity: Liquidity is the ease with which a token can be bought and sold. Index Coop wants to make sure that the MVI is liquid, so it looks for tokens that are traded on a variety of exchanges.
- Growth potential: Index Coop wants to make sure that the MVI includes tokens that have the potential to grow in the future. It looks for tokens that are backed by strong teams and have a clear roadmap for growth.
What is the Metaverse Index ?
The Metaverse Index (MVI) is designed to capture the trend of social activity, entertainment powered by NFTs and blockchain technology. It uses a combination of the square root of market cap and DEX liquidity to arrive at the final index weights. The article focuses on discussing Metaverse Index in detail.
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