Purpose of the Index
The Forbes Cryptomarkets Top 30 Global is intended to provide a provocative, informative view of a segment of the cryptocurrency market. FB30G 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 FB30G index with or without notification. The FB30G 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 30 Global Index will provide readers a higher level of understanding of what the FB30G represents, and how indices are thought of and developed in general.
As the Cryptocurrency market is always open, the Forbes Cryptomarkets Top 30 Global Index is a always updated. FB30G will there be different than from other Indicies that are focused at serving specific markets.
Reconstitution and Rebalancing Announcement
The Forbes Cryptomarkets Top 30 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 30 Global Index's constituents is performed on the first Index Business Day of the next month.
Eligibility Testing Period
For Forbes Cryptomarkets Top 30 Global there is intentionally no eligibility testing period for either the addition or removal of a component into the FB30G. 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 FB30G, the FB30G Index's divisor is rounded to four decimal places, and the FB30G'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
A cryptocurrency's use or Industry is not a consideration when determining the components of the Forbes Cryptomarkets Top 30 Global Index.
The Forbes Cryptomarkets Top 30 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
For a compontent to be qualified to be selected into the Forbes Cryptomarkets Top 30 Global index, it must have a minimum 30-day median daily value traded of 2000000 across the eligible Pricing Sources.
Number of Constituents
The Forbes Cryptomarkets Top 30 Global Index is limited to the largest 30 eligible Cryptocurrencies by Market Capitalization. FB30G cannot exceed 30 constituents. Average Market Capitalization will be used to determine which constituents will be included in the FB30G. The Average Market capitalization is calculated as the average Market Capitalization over seven days prior to, and including the index's rebalance day.
Pegged Assets and Stable Coins
The Forbes Cryptomarkets Top 30 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 FB30G. 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 FB30G will only be included in the Forbes Cryptomarkets Top 30 Global index if a price can be derived from at least 2 Forbes CryptoMarkets approved pricing sources.
Maximum weighting of a component
To promote diversification in Forbes Cryptomarkets Top 30 Global, and avoid overweighting and underweighting of a component, a ceiling is applied to how much a component may have within FB30G.
All Constituents in Forbes Cryptomarkets Top 30 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 FB30G 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 30 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 30 Global Index, the value will be set at 1000.