- CF Benchmarks has revised its Ultra Cap 5 cryptocurrency index
- ChainLink (LINK) has been added to the index, replacing Bitcoin Cash (BCH)
- The addition of ChainLink will be made official on the 27th of November
- BCH recently experienced a contentious hard fork and could be one reason for the switch
- LINK has also maintained its position in the top 5 digital assets according to market capitalization
The digital asset of ChainLink (LINK) will be added to CF Benchmarks’ ULTRA CAP 5 index, displacing Bitcoin Cash in the process. The team at CF Benchmarks made the announcement yesterday, November 18th and explained that the addition of Chainlink will be reflected on 27th November, 16:00 New York Time.
The Administrator announces portfolio composition changes to the CF Ultra Cap 5 Index in light of the November 2020 constituent review carried out in accordance with the CF Cryptocurrency Index Family – Multi Asset Ground Rules
Additions: Chainlink (LINK)
Removals: Bitcoin Cash (BCH)
…Portfolio and weight changes will be come into effect at the Rebalance Implementation Point – 1600 New York time on Friday, November 27th.
The revised Ultra Cap 5 index will constitute Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP and ChainLink (LINK). The final weighted distribution of each digital asset will be determined on November 15th, 16:00 London time.
Why ChainLink Might Have Replaced Bitcoin Cash
No immediate explanation was provided by the team at CF Benchmarks regarding ChainLink replacing Bitcoin Cash on the index. However, two reasons immediately come to mind.
Firstly, the removal of Bitcoin Cash could be as a result of the contentious hard fork that happened on the 15th of this month. The BCH 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 debating on 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 reason CF Benchmarks decided to remove Bitcoin Cash. To note is that Bitcoin Cash also experienced a similar split in November 2018 that resulted in 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.
Secondly, ChainLink (LINK) has become the go-to technology for the provision of real-time price reference data for the majority of blockchain projects. As a result, LINK has continued to climb the crypto market cap rankings and has successfully cemented its position at the number 5 spot.
Therefore, the gradual rise of the ChainLink project and the value of LINK could be another reason the ULTRA CAP 5 index was revised to reflect the new dynamics in the crypto market.