1. Introduction
The Traders Union 77 Crypto Index (“TU 77 Index”) is designed to measure the performance of a diversified basket of leading cryptocurrencies representing the broader digital asset market.
During the development process, Traders Union conducted analytical modeling and back-testing of multiple index configurations to determine the optimal composition.
Testing showed that:
- A narrow index of 10 assets resulted in excessive concentration and high dependency on a small number of dominant cryptocurrencies.
- A broad index of 100 assets introduced a large number of low-liquidity tokens, increasing volatility noise and reducing structural stability.
Following quantitative analysis and practical simulation, 77 cryptocurrencies were identified as the optimal balance between market representation, liquidity quality, diversification, and operational sustainability.
2. Index Objective
The TU 77 Index is intended to serve as a broad crypto market benchmark by:
- reflecting performance across major segments of the digital asset ecosystem
- reducing overreliance on Bitcoin and Ethereum alone
- maintaining exposure to high-liquidity, investable assets
- providing a stable analytical reference for long-term market observation
The Index is an analytical benchmark and does not represent an investment product.
3. Index Data and Publication
3.1 Data Sources
The TU 77 Index is calculated using aggregated market data obtained from validated public sources monitored by Traders Union.
Market data is sourced from multiple validated pricing providers and liquidity-screened exchanges, using an internal aggregation framework.
3.2 Pricing Framework
All constituent prices are based on USD-denominated market prices. The Index itself is expressed in index points.
3.3 Index Publication and Timing
- Index values are refreshed every five minutes using the latest available pricing data.
- Official end-of-month index levels are determined using data available at 00:00 UTC on the first day of the new month.
Traders Union reserves the right to update data providers and data aggregation procedures when necessary to ensure reliability, integrity, and continuity of Index calculations.
4. Index Construction
4.1 Eligible Universe
The TU 77 Index consists of 77 leading cryptocurrency projects selected primarily by market capitalization ranking, subject to eligibility filters.
The following asset categories are excluded:
- Stablecoins pegged to fiat currencies or reserve assets
- Wrapped or derivative tokens representing other crypto assets
- Tokens with insufficient liquidity or fragmented market structure
- Assets with significant structural, regulatory, or operational uncertainty
- Tokens with unreliable or inconsistent circulating supply transparency
Eligibility is assessed and approved by the Traders Union Index Committee.
4.2 Selection Rationale
The Index composition reflects a balance between breadth and stability.
A smaller index increases concentration risk and amplifies dominance of top assets. An excessively large index introduces lower-quality liquidity, increases tracking noise, and complicates index maintenance.
The selection of 77 constituents ensures:
- meaningful diversification
- broad sector exposure
- sufficient liquidity depth
- manageable governance oversight
4.3 Weighting Method
The TU 77 Index is calculated as a market-capitalization-weighted benchmark.
Each constituent’s weight is determined by:
- asset price
- circulating supply
5. Index Calculation
5.1 Calculation Formula
The Index level at time t is calculated as:
Where:
- Pi,t — price of asset i at time t (USD-denominated)
- Qi,t — circulating supply of asset i at time t
- Dt — Index Divisor used to preserve index continuity
5.2 Index Base Level
The divisor ensures that index level changes reflect market performance rather than structural adjustments.
6. Divisor Adjustments
The divisor may be adjusted in response to:
- monthly rebalancing
- additions or removals of constituents
- significant corrections in circulating supply
- extraordinary corporate or structural events
- material market disruptions
Divisor adjustments ensure continuity and comparability of historical index values.
The Index Base Level is set at 100 on the official Base Date of January 1, 2026, at 00:00 UTC, as established by Traders Union.
7. Rebalancing Policy
7.1 Monthly Review Process
The TU 77 Index is reviewed and rebalanced on a monthly basis, effective at 00:00 UTC on the first calendar day of each month.
7.2 Eligibility Assessment Criteria
Rebalancing decisions are not based solely on market capitalization ranking. While significant capitalization shifts act as a primary trigger, the Traders Union Index Committee applies additional criteria to assess investability and market integrity.
These criteria include:
- sustained trading liquidity across major exchanges
- sufficient daily trading volume relative to market capitalization
- depth and stability of order books
- consistency of pricing across multiple data sources
- operational accessibility and absence of prolonged trading suspensions
- evaluation of structural or regulatory risks
7.3 Reserve Candidate List
In addition to the active 77 constituents, the Committee maintains an internal reserve list of up to 15 eligible candidate assets. These candidates are continuously monitored and may replace existing constituents during scheduled rebalancing if they better satisfy index criteria.
7.4 Extraordinary Rebalancing
Between scheduled monthly reviews, the Index composition remains fixed. An unscheduled rebalancing may occur only in exceptional circumstances, including delistings, prolonged trading suspensions, severe liquidity deterioration, or structural changes affecting a constituent’s eligibility.
8. Back-Tested Performance
Index levels prior to the official launch date may be calculated retroactively using historical data consistent with the methodology.
Back-tested results are provided for analytical purposes only and do not represent actual historical performance.
9. Governance and Oversight
9.1 Index Committee Responsibilities
The TU 77 Index is administered by Traders Union and overseen by the Traders Union Index Committee.
The Committee is responsible for:
- monitoring index integrity
- reviewing eligibility criteria
- supervising liquidity and transparency requirements
- maintaining the reserve candidate list
- approving rebalancing decisions
- addressing extraordinary events
- reviewing and updating the methodology when necessary
9.2 Methodology Review and Updates
The methodology is reviewed periodically to ensure alignment with evolving market standards. Material changes will be publicly communicated through Traders Union channels.
10. Risks and Limitations
Digital asset markets are inherently volatile and subject to rapid structural changes.
The TU 77 Index is exposed to risks including but not limited to:
- extreme price volatility
- liquidity fragmentation
- cybersecurity incidents affecting exchanges or data providers
- regulatory changes
- operational risk associated with third-party market data
Although the Index is designed to reflect broad market performance, unexpected events may impact index behavior.
11. Disclaimer, Intellectual Property, and Limitation of Liability
The TU 77 Crypto Index is developed and administered by Traders Union strictly for informational, analytical, and benchmarking purposes.
The Index does not constitute financial advice, investment recommendation, or solicitation to buy or sell any digital asset. Index data is general in nature and is not tailored to any individual investor or financial situation. Past performance, including back-tested results, does not guarantee future outcomes.
All methodology rules, index calculations, design structure, naming conventions, data compilation methods, and related documentation associated with the TU 77 Index constitute the exclusive intellectual property of Traders Union. Unauthorized reproduction, redistribution, commercial licensing, or derivative use of the Index or its methodology without prior written consent from Traders Union is strictly prohibited.
The TU 77 Index relies on third-party market data sources. While Traders Union applies internal validation procedures, it makes no warranties, express or implied, regarding accuracy, completeness, timeliness, or uninterrupted availability of index calculations.
To the maximum extent permitted by applicable law, Traders Union and its affiliates shall not be liable for any direct, indirect, incidental, consequential, or special damages, including loss of profits, arising from the use of or reliance upon the Index.
The Index is provided on an “as is” basis.
