The move to provide the three new metaverse reference rates comes off as a unique contribution by the CME Group and CF Benchmarks to help with the evolution of the Web 3.0 ecosystem.
American global markets firm, the CME Group Inc (NASDAQ: CME), and CF Benchmarks have partnered to launch three new metaverse reference rates as both sought to extend their footprints in the emerging Web3.0 world. According to a published press release, the three new metaverse reference rates include Axie Infinity (AXS), Chiliz (CHZ), and Decentraland (MANA).
The metaverse is a loosely used term for virtual reality-based social interactions that many believe will dominate Web3.0, considered as the next iteration of the internet. With different crypto projects building different aspects of the metaverse, the duo of the CME Group and CF Benchmarks has highlighted a need to create a more trusted reference rate for investors following these digital currencies.
“As we continue to see a rising interest in Metaverse projects, CME Group, in partnership with CF Benchmarks, will expand its suite of regulated, non-tradable Cryptocurrency Reference Rates and Real-Time Indices to include three new Metaverse tokens,” said Giovanni Vicioso, CME Group Global Head of Cryptocurrency Products. “With increased price transparency across more cryptocurrency products, market participants will be able to price sector-specific portfolios, develop structured products with greater confidence and manage price risk around various Metaverse-based projects.”
According to the CME Group, the metaverse reference rates will be computed by prices adapted from exchanges listed as the go-to places for its benchmarks. These trading platforms include Bitstamp, Coinbase Global Inc (NASDAQ: COIN), Gemini, itBit, Kraken, and LMAX Digital. Per the announcement, the Metaverse Reference Rates is not a futures product that can be traded by investors.
The metaverse reference rate will be published once a day at 4 pm London Time, but according to the CME Group, it will be accessible round the clock all year long.
CME Group and CF Benchmarks Solidifying the Metaverse
The move to provide the three new metaverse reference rates comes off as a unique contribution by the CME Group and CF Benchmarks to help with the evolution of the Web 3.0 ecosystem.
Without a trusted price source, regulators especially will always assume that key tokens are susceptible to algorithmic manipulation. By riding on the reputation of the CME Group, Axie Infinity, Chiliz and Decentraland will further be able to boast of price accuracy in league Bitcoin (BTC) and other assets previously profiled by the duo.
“These benchmarks will provide accurate and resilient pricing data for tokens linked to the Metaverse, an exciting new scion of crypto where properties and communities can exist wholly within a virtual realm,” said Sui Chung, CEO of CF Benchmarks. “CF Benchmarks is proud to continue its work with CME Group, providing investors with exposure to all facets of the digital asset class with reference rates that meet the high benchmarking standards they’ve come to expect.”
Many are optimistic that such related price benchmarks will serve as a yardstick for new institutional investors to back the new assets.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
