12 Apr 2023
Methodology - The K33 Vinter Quality IndexThe KVQ index comprises an equally weighted mix of the most promising tokens amongst the top 30 crypto assets. Tokens with a low long term survival-probability are excluded, contributing to a substantial reduction in downside risk in the index.
A top 30 token must pass the Quality Filter for inclusion in the index. The purpose of the Quality Filter is to evaluate the quality of crypto assets from an investor's standpoint. A high-quality asset is defined as an asset with a small probability of permanent financial loss, while a low-quality asset possesses a significant probability of permanent financial loss. The quality filter consists of the following four steps.
- Categorize: Each asset is assigned to a category, which allows for relative comparison.
- Exclude: Assets with faulty tokenomics, missing information, or presenting a lack of transparency are taken out.