The leading cryptocurrency derivatives exchange, FTX exchange, has introduced a new Wall Street bet index. FTX made this move following the parabolic surge of several assets, including GameStop’s GME, AMC, and Dogecoin (DOGE), in recent weeks. The firm named its new index after Wall Street Bets, the Reddit group that has been reportedly responsible for pumping all these assets. FTX said:
‘We’re happy to announce that we have launched trading for a basket of wall street bets markets.’
On January 28, FTX announced that the newly launched index contract would run until March 26, 2021. According to the exchange’s CEO, Sam Bankman-Fried, this period may be extended. He hinted:
‘We’ll see, if there is enough demand, we’ll list Junes!’
Bankman also has highlighted that the future WSB index futures contract is ‘Cash settled vs the index of the tokenized share markets on FTX.’
Wall Streets Bets Index’s Insight
The Wall Street Bet index, WSB index, will officially trade under the ticker WSB-0326; with its last four digits marking the expiration date of the contracts. This index will track the prices of NOK, BB, AMC, GME, SLV, DOGE, and FTT using a weighted average of their prices.
Each asset will hold an equal weight of 16.5% except the FTT which will hold 1%. The cumulative total of those six assets, each weighing 16.5%, and the weight of FTT will add up to 100%.
In the past several days, a stock market forum on Reddit, the Wall Street Bets, has been allegedly working on pumping the prices of multiple stocks, including AMC and GME, in the wake of large entities trying to short these stocks. On January 29, Dogecoin’s price skyrocketed to an attain all-time high of $0.078175 in line with chatter arising from the same group.