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105. ERC 20 Token Index (Published: 22nd Jun, 2018)

We, at Cryptomover, is introducing another novel index, the ERC20 Token Index. Yep, an index that composes of entirely ERC20 coins.

What is ERC 20?

Basically, ERC20 is THE technical standard for tokens issued on the Ethereum network. A smart contract that runs on top of the ETH network, it allows issuers to issue tokens. Similar to other cryptocurrencies (eg: Bitcoin and Ethereum), these ERC20 tokens can be sent/receive and have value.

The simplify details of the interface of a ERC20 contracts are as follows:

  • Allowance — allows for two address to create repeated unidirectional transfer
  • Approve — allows for two addresses to repeatedly withdraw unidirectionally
  • BalanceOf — accepts a single address input parameter & returns a single public constant
  • TotalSupply — total supply constant
  • Transfer — allows for the wallet owner to directly send tokens to an address
  • TransferFrom — allows for a smart contract to execute a transfer with the parameters passed on behalf of the wallet owner

Benefits of ERC 20?

ERC20 is a huge innovation. For developers, it becomes trivial to issue an cryptocurrency. For hodlers, holding an ERC20 is no more than securing your ETH private key. For exchanges, listing the ETH / ERC20 pair is simple. Thus, currently, most ICOs issue ERC20s.

The others main advantage will be as follows:

  • Fast and Uniformly transaction on the ETH network secured by ETH network hash rate
  • Reduce risk of contract breaking as the code has been proven
  • For web client — standard ways to interact with the blockchain
  • Hardware wallet support — if ETH is supported, it will work

Cryptomover ERC 20 index

Our ERC 20 index provides an easy way to track ERC 20 coins. We primarily focuses on the following rules to screen index constituents:

  • The token must conform ERC20 standards
  • The market capitalization higher than 100,000,000 USD
  • 24 hour trading volume higher than 2,000,000 USD

These ten tokens cover more than 60% of the ERC 20 value in terms of market capitalization. The weights of each index member is market capitalization weighted. The index is rebalance monthly. Ten initial ERC 20 index member are, namely, Vechain, OmiseGo, ICON, Zilliqa, Aeterenity, 0x, Bytom, Golem, Populous and Augur.

 
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