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🔥💥VanEck launches MarketVector “MEMECOIN” index to track BONK, FLOKI, DOGE, PEPE, WIF and SHIB tokens
VanEck enters the memecoin space with a special tracking index
VanEck entered the meme coin arena with an index to track how the best performing Bonk Inu (#BONK ), #Floki Inu (FLOKI) and Dogecoin (#DOGE ) performed against the worst performing Pepe (PEPE), Dogwifhat (WIF) and Shiba Inu (SHIB).
Vaneck's MarketVector meme coin index MEMECOIN, popular for its HODL etf, tracks how the industry's six bigwigs are performing on market cap metrics. This weighted methodology will allow the business selection to be measured based on market value parameters. As a risk diversification strategy, the weights of the relevant coins will be limited to 30%.
DOGE (30.64%) and SHIB (28.01%) lead the weight of the index. PEPE (14.18%), WIF (13.29%), FLOKI (7.17%) and BONK (6.21%) also took part.
Aware that meme coins are a global bombardment point for speculative liquidity, the asset manager issued a disclaimer that “The coins are for entertainment purposes.” This underlines the volatility of the sector and the ease of price fluctuations based on market sentiment. Because of this quality, some believe that cat-themed tokens may soon enter the index.
However, Vaneck's MEMECOIN index in itself is an indicator that meme coins are gaining recognition and acceptance in the space. During Token 2049, Tron founder Justin Sun discussed meme coins. In a follow-up post about X, he said, “Meme coins may seem unusual, but they highlight the power of community in crypto.”
The sector is steadily turning into a real bona fide cryptocurrency Apr niche on its own. Avalanche Foundation's plans to start investing in the sector's tokens at the end of 2023 have reinforced this rise.
