On the 27th of November, CF Benchmarks revised its Ultra Cap 5 index, replacing Bitcoin Cash with Chainlink
According to the team at CF Benchmarks, ChainLink will be added to the CF Benchmark ULTRA CAP 5 index, replacing Bitcoin Cash in the process. As such, Chainlink will be officially added on November 27, 16:00 New York Time.
Switch happens Friday 27 Nov
— CF Benchmarks (@CFBenchmarks) November 18, 2020
CF Benchmarks has revised its ULTRA CAP 5 index, replacing Bitcoin Cash with Chainlink
The notice states:
“The Administrator announces portfolio composition changes to the CF Ultra Cap 5 Index in light of the November 2020 constituent review carried out in compliance with the CF Cryptocurrency Index Family – Multi-Asset Ground Rules
Additions: Chainlink (LINK)
Removals: Bitcoin Cash (BCH)
… Portfolio and weight changes will become into effect at the Rebalance Implementation Point – 1600 New York time on Friday, November 27th.”
The revised Ultra Cap 5 Index will form Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP, and ChainLink (LINK). The final weighted distribution of each digital asset will be determined Nov. 15, London time, 16:00.
The team at CF Benchmarks doesn’t offer an immediate explanation for how ChainLink is replacing Bitcoin Cash on the index. However, the two reasons are as follows.
First, the removal of Bitcoin Cash could be the result of the controversial hard fork that happened this month 15. The BCH hard fork saw the Bitcoin Cash blockchain split into two competing networks of Bitcoin Cash Node (BCHN) and Bitcoin Cash ABC (BCHA). The split is because the BCH community is arguing over a proposed 8% tax on all miners’ profits going to an address owned by the BCH ABC faction.
Perhaps the pass-through was one of the reasons why CF Benchmarks decided to drop Bitcoin Cash. It should be noted that Bitcoin Cash also experienced a similar split in November 2018, leading up to the creation of Bitcoin SV (BSV). Two hard forks in less than 2 years could sign that this will be a repeat event every few years.
Second, ChainLink (LINK) has become a cutting-edge technology for providing real-time price reference data for most blockchain projects. As a result, LINK has continued to climb up the cryptocurrency market capitalization rankings and has successfully solidified its position at No.5.
Hence, the gradual rise of the ChainLink project and LINK’s value could be another reason why the ULTRA CAP 5 index is revised to reflect new dynamics in the cryptocurrency market.
- Chainlink Price Has Been Quite Positive, Noting It Is Still Trading Well-Within A Large Triangle Formation
- Chainlink’s High Funding Rates As One Reason Why Chainlink Price May See A Sustained Pullback In The Short-Term