Purpose of the Index
The Forbes Cryptomarkets Top 10 Blockchain and Apps Global is intended to provide a provocative, informative view of a segment of the cryptocurrency market. FBAPPSG is not designed or maintained to be used as a tool to drive specific investment decisions. Unlike investment grade indices, Forbes CryptoMarkets may change the rules of the FBAPPSG index with or without notification. The FBAPPSG may be discontinued at any time and without notice, and its availability, accuracy, and alignment to the published description of the rules is not guaranteed.
Forbes CryptoMarkets is seeking to build the most compelling, interesting indices. We believe that publishing our methodology of the Forbes Cryptomarkets Top 10 Blockchain and Apps Global Index will provide readers a higher level of understanding of what the FBAPPSG represents, and how indices are thought of and developed in general.
As the Cryptocurrency market is always open, the Forbes Cryptomarkets Top 10 Blockchain and Apps Global Index is a always updated. FBAPPSG will there be different than from other Indicies that are focused at serving specific markets.
Reconstitution and Rebalancing Announcement
The Forbes Cryptomarkets Top 10 Blockchain and Apps Global Index's constituents are determined and rebalanced monthly. The Index weights and Constituents are calculated and announced 4 Business Days prior to end of month.
Reconstitution and Rebalancing Implemnetion
The implementation of a monthly reconstitution of the Forbes Cryptomarkets Top 10 Blockchain and Apps Global Index's constituents is performed on the first Index Business Day of the next month.
Eligibility Testing Period
For Forbes Cryptomarkets Top 10 Blockchain and Apps Global there is intentionally no eligibility testing period for either the addition or removal of a component into the FBAPPSG. Other Forbes Indices may implement an eligibility period of a defined number of concurrent months in which eligibility criterion will be tested before a cryptocurrency is removed or added.
Cryptocurrencies that meet the eligibility criterion at the time of a reconstitution process will be added during the process. Likewise, Cryptocurrencies that fail to meet the criterion will be removed during the reconstitution.
When developing the FBAPPSG, the FBAPPSG Index's divisor is rounded to four decimal places, and the FBAPPSG's weighting ceiling is rounded to twelve decimal places.
All Forbes Cryptomarkets indices (both Global and US) base their rebalancing calender on the NYSE Calendar. Found at https://www.nyse.com/markets/hours-calendars.
Weights are calculated at the the 11:00:00 EST Forbes Cryptocurrency Crypto Calculation ("FCCC"), which is four business days prior to the end of the month as definded by the NYSE.
Included Cryptocurrencies Use or Industry
The Forbes Cryptomarkets Top 10 Blockchain and Apps Global Index is targetted only to include cryptocurrencies that Forbes CrypoMarkets has designated as APPS.
The Forbes Cryptomarkets Top 10 Blockchain and Apps Global will only contain components that are designated as "tokens" and "coins" by Forbes CryptoMarkets.
A Token is a cryptocurrency that is created and operated on another cryptocurrency platform. Coins are cryptocurrency that operates independently on their own platform.
Minimum Market Capitalization
We have not intentionally required a minimum market capitalization threshold for the Forbes Cryptomarkets Top 10 Blockchain and Apps Global index. We have done this to maximize the number of components in this index. Therefore it is possible that very small, thinly traded cryptocurrencies may be included as a component in this index, and this index may experience significant volatility.
Number of Constituents
The Forbes Cryptomarkets Top 10 Blockchain and Apps Global Index has no limit on the number of constituents. As cryptocurrencies are identified to satisfy the other listed criteria, they will be added in the next FBAPPSG index rebalancing cycle.
Pegged Assets and Stable Coins
The Forbes Cryptomarkets Top 10 Blockchain and Apps Global only includes cryptocurrencies that are intended to have free floating prices. Therefore cryptocurrencies that are pegged to the value of an asset will not be considered as a component for FBAPPSG. This exclusion is inclusive of cryptocurrencies pegged to physical commodities or currencies (i.e. a stable coin).
Number of Data Sources Required for Inclusion
Constituents in the FBAPPSG will only be included in the Forbes Cryptomarkets Top 10 Blockchain and Apps Global index if a price can be derived from at least 1 Forbes CryptoMarkets approved pricing sources.
Maximum weighting of a component
To promote diversification in Forbes Cryptomarkets Top 10 Blockchain and Apps Global, and avoid overweighting and underweighting of a component, a ceiling is applied to how much a component may have within FBAPPSG.
All Constituents in Forbes Cryptomarkets Top 10 Blockchain and Apps Global are initially ordered by their market capitalization. Then a maximum weight of 0.3 is applied to all constituents.
If a constituent exceeds the ceiling, the weight will be set to, and the remaining weight shall be redistributed across all other constituents in proportion to their weight.
Weights are calculated only during the rebalancing process. Once FBAPPSG is rebalaced, any subsequent price changes will move the weights away from their ceiling.
Price Calculation and Pricing Data Sources
The constituent's price is a simple average of the price over a 15 minute window. The price is generated from realtime pricing data deleivered from multiple pricing sources.
Forbes will choose the total pool of available pricing data sources. The selection of pricing data sources is critical to publishing a strict rules-based index list like Forbes Cryptomarkets Top 10 Blockchain and Apps Global, and is therfore based on specific rules: If more than 3 pricing sources are available to price a constituent, a mean price is calculated and sources that are furthest from the mean are dropped.
At the designated starting date and time of the Forbes Cryptomarkets Top 10 Blockchain and Apps Global Index, the value will be set at 1000.