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Quick grip:
- CF Benchmarks has revised its Ultra Cap 5 cryptocurrency index
- ChainLink (LINK) was added to the index, replacing Bitcoin Cash (BCH)
- The addition of ChainLink will be made official on November 27th
- BCH recently underwent a controversial hard fork and could be one of the reasons for the switch
- LINK also maintained its position in the top 5 digital assets by market capitalization
ChainLink’s (LINK) digital asset will be added to CF Benchmarks’ ULTRA CAP 5 index, replacing Bitcoin Cash in the process. The CF Benchmarks team made the announcement yesterday, November 18th and explained that the Chainlink addition will be reflected on November 27th, 4:00 pm New York time.
Administrator announces portfolio composition changes for CF Ultra Cap 5 Index in light of constituents revision of November 2020 carried out in accordance with CF – Multi Asset Ground Rules cryptocurrency index family
Additions: Chainlink (LINK)
Removals: Bitcoin Cash (BCH)
… Portfolio and weight changes will take effect on Rebalance the implementation point – 4:00 pm New York time Friday November 27th.
The revised Ultra Cap 5 index will consist of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP and ChainLink (LINK). The final weighted distribution of each digital asset will be determined on November 15th at 4pm London time.
Why ChainLink may have replaced Bitcoin Cash
No immediate explanation was provided by the CF Benchmarks team regarding ChainLink replacing Bitcoin Cash on the index. However, two reasons immediately come to mind.
First, the removal of Bitcoin Cash could be the result of the controversial hard fork that took place on the 15th of this month. BCH’s hard fork saw the Bitcoin Cash blockchain split into two competing networks of Bitcoin Cash Node (BCHN) and Bitcoin Cash ABC (BCHA). The split was due to the BCH community debate over a proposal for an 8% tax on all miner profits to be sent to an address owned by the BCH ABC faction.
Perhaps the back and forth between the two camps was one of the reasons CF Benchmarks decided to remove Bitcoin Cash. Note that Bitcoin Cash also underwent a similar split in November 2018 which led to the creation of Bitcoin SV (BSV). Two hard forks in less than 2 years could be a sign that this will be a recurring event every few years.
Second, ChainLink (LINK) has become the go-to technology for providing real-time pricing benchmark data for most blockchain projects. As a result, LINK continued to climb the cryptocurrency market cap rankings and successfully cemented its fifth place position.
Therefore, the gradual increase of the ChainLink project and the value of LINK could be another reason why the ULTRA CAP 5 index has been revised to reflect the new dynamics in the cryptocurrency market.
