Sunday 29 January 2023
Home / none / CME Group to launch 3 metaverse reference rates

CME Group to launch 3 metaverse reference rates

Derivatives marketplace CME Group is planning to launch reference rates and real-time indexes for three metaverse crypto assets, allowing investors to track pricing data more reliably using a methodology commonly used in traditional finance.

Beginning Jan. 30, CME Group and CF Benchmarks will launch reference rates for Axie Infinity Shards (AXS), Chiliz (CHZ) and Decentraland’s MANA (MANA), the company announced on Jan. 5. The reference rates and indexes are not tradeable products but instead can be used by investors to “price sector-specific portfolios, develop structured products […] and manage price risk around various Metaverse-based projects,” said Giovanni Vicioso, CME Group’s head of cryptocurrency products.

The reference rates and real-time indexes for AXS, CHZ and MANA will be calculated using pricing data from at least two crypto exchanges, including Bitstamp, Coinbase, Kraken, itBit and LMAX Digital. The assets’ reference rates will be priced in U.S. dollars and published daily at 4:00 pm GMT. Each real-time index will be published every second of every day.

Chiliz, the largest of the aforementioned metaverse plays, currently has a market capitalization of $742.1 million, according to CoinMarketCap. AXS has a market cap of $686.5 million, and MANA is worth roughly $597.2 million.

CME Group has been active on the crypto scene, launching micro-sized Bitcoin (BTC) and Ether (ETH) options last year. The derivatives marketplace also launched euro-denominated BTC and ETH options for institutional investors outside the United States.

Related: An overview of the metaverse in 2022

Metaverse tokens exploded in popularity during the previous crypto bull market as dozens of projects promised to create virtual versions of the real world. Recognizing this potential opportunity, Mark Zuckerberg’s Facebook rebranded to Meta in October 2021. Meta’s metaverse division has been hemorrhaging money since its inception, underscoring the difficulties of creating commercially viable products in the new virtual world.

Original Article

About Jude Savage

Check Also

Solana price rally risks exhaustion after SOL’s 120% pump in two weeks

Solana (SOL) price is up an impressive 60% since the new year, partially boosted by hype surrounding meme cryptocurrency Bonk (BONK). However, the SOL/USD pair now shows signs of exhaustion, raising anticipations that the token may see a short-term correction in the coming days. Solana turns overboughtSolana is one of the best performing cryptocurrencies so far in 2023 after being one of the biggest losers in 2022. On Jan. 9, SOL's price jumped to as high as $19.50, or around 120% gains in a recovery rally after sliding below $8 on Dec. 29, 2022. But the price spik also turned Solana into an overbought asset, per its daily relative strength index (RSI) reading above 70, as shown below. SOL/USD daily price chart. Source: TradingViewTraditional investors typically see an overbought RSI as a potential sell signal, given the indicator has historically coincided with a period of buyer exhaustion. As a result, SOL's price could enter a correction or a sideways consolidation stag..

Leave a Reply

Your email address will not be published. Required fields are marked *