By Tom Blitzer
Key Insights:
- HKVAC’s exclusion of top cryptocurrencies like SOL, AVAX, UNI, ETC sparks industry uproar.
- FTM and EOS inclusion in HKVAC’s index stirs controversy due to their lower market caps.
- HKVAC promises index rebalancing, signalling possible inclusion of previously excluded cryptocurrencies.
Hong Kong’s Virtual Asset Consortium (HKVAC) has ignited controversy with its recent publication of a virtual asset index. Significantly, the agency sidestepped several leading cryptocurrencies such as SOL, AVAX, UNI, ETC, causing a ripple in the crypto world.
Casting Shadows on Top Cryptocurrencies
In the wake of the controversy, the index surprisingly included FTM and EOS, cryptocurrencies with a relatively lower market cap. For instance, as per CoinMarketCap, Fantom’s FTM, currently priced at $0.3031, is ranked 46 by market cap. Moreover, EOSIO’s EOS, with a market cap ranking of 50, is currently priced at $0.7100.
However, HKVAC bypassed several significant market players in their top 30 list. Blockchain platform Solana’s SOL, currently trading at $16.14, holds 10th in the global market cap rankings. Additionally, Avalanche’s native token, AVAX, with a price of $12.96 and a 24-hour trading volume of $115,248,018, sits comfortably at the 18th spot in terms of market cap.
Exclusion of Major Market Players Sparks Dissension
The exclusion of UNI further highlighted the contentious nature of the index, the native token of the decentralized exchange Uniswap. This cryptocurrency trades at $5.13 and occupies the 26th position in the global market cap rankings. Besides, Ethereum Classic’s ETC, which trades at $18.34, and holds the 29th spot in the international market cap, was conspicuously absent.
Consequently, the crypto community reacted, causing the rating agency to assure a rebalancing of the index by July 14, with consideration towards including the omitted cryptocurrencies. Chinese crypto reporter Colin Wu’s thread on his Twitter page Wu Blockchain, brought more attention to HKVAC’s response to the ongoing arguments.
The index, as it stands, includes the top 30 cryptocurrencies by market cap, with BTC and ETH reigning supreme. The list also consists of an array of other entrants, namely ADA, ALGO, ATOM, BCH, BNB, BTCB, DOGE, DOT, EOS, FTM, FIL, HBAR, ICP, LDO, LEO, LINK, LTC, MATIC, NEAR, OKB, QNT, SHIB, stETH, TRX, VET, WBTC, WTRX, XLM, XMR, and XRP.
Hence, excluding the leading cryptocurrencies like SOL, AVAX, UNI, and ETC, raises serious questions about the comprehensiveness and accuracy of the HKVAC’s virtual asset index. A swift rebalancing would help quell the raised eyebrows and restore the agency’s credibility in a rapidly evolving industry that values accurate representation and inclusivity.
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