Upshot unveils new NFT indexing methods, empowering developers to build new financial infrastructure for NFTs and improve market insights
New feature helps investors track the performance of the NFT market or specific market segments
NEW YORK, June 13, 2023–(BUSINESS WIRE)–Upshot, a firm that builds financial infrastructure for NFTs and other traditionally illiquid assets, announced the launch of Upshot Indexes, a new feature of the Upshot platform that allows NFT financing projects to use Upshot’s API to build new financial solutions using indices. Upshot indices work similarly to traditional indices, allowing users to track a basket of assets, in this case NFTs.
The methodology of these indices includes assessing the market value of the assets in the collections for weighting. Market values are calculated using Upshot’s ML-powered NFT valuations, providing a more accurate estimate of value than other, potentially unreliable valuations such as minimum price. By tracking a basket of NFTs, Upshot Indexes aims to provide tools for developers building NFT financing projects so that these projects can provide diversified exposure and valuable insight into the broader NFT market.
“NFT indices are not a new thing,” said Upshot Co-founder and CEO Nick Emmons. “There have been several other attempts – but they tend to fall short due to challenges with price accuracy, tracking illiquid NFT markets and less than attractive baskets of NFTs to date. Our NFT index methods change all this, giving projects the ability to quickly and easily develop accurate, flexible and interesting curves with NFTs to monitor.”
Initial Performance Indices: Yuga Index, Art Blocks Index and PFP Index
Upshot is launching three initial indices targeting different NFT market segments:
The result of the Yuga index– The methodology behind the Upshot Yuga Index monitors the performance of collections under the Yuga Labs umbrella, weighted by appraisal-based market value. This methodology captures some of the most fluid NFT collections, enabling developers to offer exposure to verticals such as PFPs, metaverse, generative art, and games in a single index.
Result Art Blocks Curated Index– The methodology behind the Upshot Art Blocks Curated Index tracks the top 20 Art Blocks Curated NFT collections, enabling developers and projects to offer exposure to cutting-edge generative art.
Result PFP index– The methodology behind the Upshot PFP Index tracks the top 20 PFP collections (profile picture), weighted by appraisal-based market value. This index represents a significant part of the NFT space, with many PFP projects driving social identity, community engagement and network value within the digital realm.
Using Upshot’s Index API, these index methods can be used as a price oracle to create NFT perpetuals and other innovative financial products. This approach allows developers to create instruments that enable investors to gain exposure to a more diversified portfolio of NFTs, reducing the risk associated with investing in individual assets.
The value of these index methods extends beyond their potential investability. By providing a window into various NFT market segments, they help investors and market participants better understand trends, market dynamics and the overall health of the NFT ecosystem.
Future development and index expansion
Although Upshot will not issue these indices as investable products directly, the company is actively exploring partnerships with financial institutions and developers to create ETFs, perpetuals and other investment products based on the Upshot indices. As the NFT market continues to grow and develop, Upshot plans to expand its index offerings to capture new trends and opportunities in the space.
For more information about Upshot and Upshot Indices, please visit https://upshot.xyz/.
Upshot is a firm that builds financial infrastructure for NFTs on top of their industry leading NFT valuations. By delivering accurate and reliable assessments in near real-time, Upshot enables the creation of new solutions at the intersection of decentralized finance (DeFi) and NFTs – for the industry and themselves.
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