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The Crypto Price Pendulum

Interview

The Crypto Price Pendulum

In the early days of Bitcoin, there were only a handful of cryptocurrencies to invest in and track. But with the meteoric growth of the digital currency landscape soon there was an ocean of options for traders to consider.

Bringing deep foresight to this emerging trend, Herbert Law founded the Crypto Price Index (CPI), a new cutting edge approach to tracking the top 200 cryptocurrencies by market capitalization.

A former airline captain with Sichuan Airlines, Law’s background in crypto and commodities trading, crypto mining, and international investments led him to pursue the development of this tool. Likened to the Dow Jones Industrial Average and fueled by a native token known as the CPI coin, this index offers an in-depth trading history of leading blockchain projects.

Says Law: “Our mission is to make the CPI Blockchain a single trustworthy source of up-to-date price data for the digital asset markets, becoming a valuable source of information for traders and other market participants.”

In a feature interview with Blockchain Beach, Law shared a few of his thoughts regarding the history and developmental trajectory of CPI and what it means for the future of crypto market information:

Michael Scott, Contributing Author: What led you to crypto after many years in the aviation industry.

Herbert Law (CPI): Having enjoyed silver and other commodity day trading for some time now, I started playing with crypto trading 3 years ago. I felt that it was a much freer way to trade and make money without the restrictions of commodities. But I was also drawn to this space because I believe in its capacity to create wealth-generating opportunities for more people who have been disenfranchised or simply haven’t found success within traditional financial systems.

So what is the Crypto Price Index?

It is the first index API to offer an insight into all of the top 200 crypto assets by market cap through a single, easily managed coin that offers stability to volatile crypto markets.

And its importance?

I feel CPI is very important because the crypto market will eventually be fully regulated just like the stock market. Of course, the stock market has its own indicators, including the Dow Jones Industrial Average (DJIA) and S&P 500.

What sort of problems does it solve for the industry?

Given my experience in the more traditional finance sphere, I understand the importance of financial indicators in making sound investment decisions. The crypto economy boasts more than 3,000 tokens, yet the industry lacks a comprehensive index to accurately reflect the overall health of the market. Without a trusted index, crypto traders must do all research and due diligence on their own.

Have there been any significant milestones in the development of CPI?

Yes. The Emirati royal family of the United Arab Emirates has invested in CPI and acquired 15% of the company. As collaborators, we are working together with them to develop the CPI platform. In fact, Highness Sheikh Abdullah Bin Rashed Al Sharqi is an advisor to the board of our company.

How are crypto prices presently calculated?

When it comes to crypto markets in general, just like traditional stocks, cryptocurrency prices are driven by a combination of public perception, supply, and demand, among other factors.

And how does the CPI add to and/or change that narrative?

The crypto price index, CPI30 or CPI200, will be calculated by a proprietary API to produce the average price of the top-trading coins by market cap. There are many factors involved in creating a stable coin that is controlled by a special API. This index price will be maintained through the used of an arbitrage algorithm to purchase the underlying digital assets of the CPI30 or CPI200.

What 3-4 trends do you see on the horizon over the next 12-18 months in terms of crypto prices?

I certainly don’t claim to have a crystal ball or the ability to predict the future. However, I see the following trends in the near future:

  • More regulation involving purchasing crypto
  • The crypto market cap to rise
  • More stable platforms being introduced into the market
  • BTC price increase

In closing, what is your vision for CPI over the next 12-18 months?

We plan to develop a CPI30 index, which will be an indicator of the average weighted price of the top 30 cryptos. Our first product will be the CPI200, which is based on the average price of the top 200 trading cryptocurrencies on the market calculated via CPI’s proprietary algorithm. The CPI200 will be the most comprehensive index for crypto markets to-date with most other indexes including far fewer coins.

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Michael Scott is a contributor to Blockchain Beach, specializing in the areas of blockchain technology, cryptocurrency and digital cities.

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