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The Hong Kong HKVAC Rating Agency has revealed its index, which tracks the biggest crypto assets by market cap, including Shiba Inu and XRP.
The Hong Kong Virtual Assets Consortium (HKVAC), a rating agency focused on assessing the dependability of crypto assets and exchanges, has released its latest virtual asset index. This comprehensive index encompasses 30 crypto assets, based on the market cap, including Shiba Inu (SHIB) and XRP.
Colin Wu, a prominent Chinese crypto and blockchain reporter, drew public attention to the development in a tweet today.
Hong Kong rating agency HKVAC announced its virtual asset index, in addition to BTC ETH stablecoins, including WBTC, BTCB, stETH, BCH, LTC, BNB, MATIC, ADA, ATOM, FIL, NEAR, ALGO, ICP, XRP, DOGE, DOT, WTRX, SHIB, TRX, LINK, LEO, XMR, XLM, OKB, LDO, HBAR, VET, QNT, FTM, EOS.…
— Wu Blockchain (@WuBlockchain) June 27, 2023
HKVAC’s primary objective is to furnish investors and regulators with a reliable point of reference regarding virtual assets’ performance and associated risks. Interestingly, the recently-introduced index omits Solana (SOL), raising questions among investors.
The agency’s official website discloses two versions of the index available. The first assigns weights to the crypto assets based on their market capitalization, while the second factors in their risk rating during the weighting process.
HKVAC employs a hybrid approach to determine the risk rating, combining both>The decision to include Shiba Inu in the index signifies the rising prominence of SHIB within the cryptocurrency ecosystem. Furthermore, HKVAC’s choice to index XRP serves as a testament to the differing viewpoints held by international bodies regarding the security status of this digital asset.
Recall that XRP is currently entangled in a legal battle with the SEC, as the regulatory agency contends that it is an unregistered security. Despite the SEC’s position on XRP’s security classification, numerous global entities hold contrasting opinions.
While HKVAC holds a position of prominence, it is crucial to acknowledge that its index is not officially associated with the Securities and Futures Commission (SFC), as it operates independently. Consequently, its reference value may be limited for investors seeking to comply with the SFC’s regulatory framework.
The Core Mission of HKVAC
HKVAC, established in May 2023 with the backing of esteemed Hong Kong legislator Johnny Ng, Huobi, KuCoin, and other industry stakeholders, operates with a clear mission in mind.
The organization is dedicated to fostering transparency and accountability in the virtual asset trading market while providing educational resources to the general public about crypto investments.
Additionally, HKVAC strives to support Hong Kong’s aspiration to become a leading global hub for Web3 technologies by facilitating the application of Web3 infrastructure.