Fumbi Index Portfolio regular update

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Fumbi Index Portfolio regular update

Another three months have passed, and we are updating the Fumbi Index portfolio again. We are adding new cryptocurrencies to the portfolio for you that have the potential to grow and, vice versa, we eliminate those that do not meet our high standards. We are a market leader with the broadest dynamic portfolio based on daily rebalancing.

Thanks to the new portfolio adjustment, we are able to more accurately track market movements and thus minimize possible deviation. The Fumbi algorithm currently recalculates more than 20 cryptocurrencies every day.

Why is it better to invest in a Fumbi portfolio?

Portfolio investment is considered a much safer form than investing in individual cryptocurrencies. With cryptocurrencies, it is never entirely clear which of them will grow and which will stagnate. With a dynamic portfolio that is recalculated daily, the investor only has to decide whether the cryptocurrency market as such will grow in the long-term or merely disappear.

While the rise of the price of Bitcoin gets the biggest media coverage among all cryptocurrencies, other cryptocurrencies often do not receive the same attention, even though they sometimes rise much more sharply.

Which cryptocurrencies have we added?

At Fumbi, we closely monitor developments in the cryptocurrency market on a daily basis and analyze many crypto assets so we can deliver the most suitable ones for you.

This time we expanded the Fumbi Index portfolio with the following assets:

  • Elrond (EGLD) – Elrond is an innovative blockchain platform aimed at solving three fundamental problems of current blockchains : security, scalability and interoperability. Elrond plans to solve these problems through its unique Adaptive State Sharding, and by using the Secure Proof of Stake (SPoS) consensus mechanism.
  • Fantom (FTM) – Fantom is a decentralized, high-scalable smart contract platform that allows developers to deploy decentralized applications. Fantom uses Lachesis consensus algorithm, where Lachesis’s output can be used immediately and transactions are confirmed in 1-2 seconds.
  • Near Protocol (NEAR) – NEAR is a decentralized development platform designed to provide the ideal environment for decentralized applications. NEAR uses a technology known as Nightshade, where transactions are processed in parallel across multiple sharded chains to improve the network scalability.
  • Flow blockchain (FLOW) – Flow is a blockchain designed specifically for games and digital collectibles, providing fast and low-cost transactions. Flow also features upgradeable smart contracts, allowing smart contracts to be deployed in beta and then enhanced or fixed before being finalized and made immutable.
  • The Sandbox (SAND) – The Sandbox is a play-to-earn blockchain game that allows players to build a virtual world using non-fungible tokens (NFTs) on the Ethereum blockchain. Players can design their own avatars to access the different games, environments, and hubs on The Sandbox metaverse. The SAND token is the native token of The Sandbox and It is used as the basis of all transactions and interactions in the game.

Which cryptocurrencies have we removed?

Some of the cryptocurrencies from the Fumbi Index portfolio have recorded a decline in activity in recent months, respectively a relatively small increase compared to the competition and therefore we decided to delist them. These assets include e.g. Tezos, which is still in the Top 50 cryptocurrencies (sorted by the market capitalization), but the activity on Tezos network is very low due to its competitors.

We have excluded crypto assets such as Maker, PancakeSwap and Kusama even though we consider their fundamentals to be relatively strong, but have seen a decline in market capitalization and therefore they do not meet the formal criteria of our portfolio (ie to be in the Top 50).

The summary of delisted cryptocurrencies is the following:

  • PancakeSwap
  • Tezos
  • Maker
  • Kusama

How do we choose cryptocurrencies?

At Fumbi, we follow strict rules for choosing the right cryptocurrencies that could enter our portfolio. In addition to formal criteria related to liquidity, market capitalization, or custody, assets must have strong fundamentals in three categories that we identify as key in the market – payment systems, decentralized finance, and Web 3.

You can read more about cryptocurrency selection in our portfolio in the article – Fumbi Index Portfolio Thesis.

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Juraj Forgacs

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