FTX exchange's "Shitcoin Index" has dropped 40% since its launch.

This might be one of the most bizarrely named futures indices in the crypto market, called SHIT-PERP or Shitcoin Index Perpetual Futures. Since its launch in late July, the index has already dropped by 40%.

The "Shitcoin Index" is a basket of tokens including 58 projects such as Grin, Nano, and Waves, launched as an index product by FTX trading platform after index calculation.

Within just over a month of its launch, the index has dropped from around $1,000 to the current $691.

According to reports, after being incubated by Alameda Research, derivative trading platform FTX officially launched this year. Trading products include futures, spot, and index trading, gradually adding spot coins and margin trading.

FTX CEO Darren Wong mentioned in an August interview with Coindesk that the index allows users to interact with tokens in innovative ways. For example:

Users may stake some PoS tokens to earn node rewards and can short them through SHIT-PERP to hedge against the risk of a decline, avoiding the scenario of "earning dividends but losing capital."

In light of Bitcoin's continued dominance in recent days, he further stated:

If users feel that Bitcoin's dominance is too high, they can long FTX's altcoin futures index and short Bitcoin futures index BTC-PERP.

It is understood that FTX launched a new project called Exchange Coins Index EXCH Futures on September 3, tracking platform coins including BNB, LEO, HT, and OKB.

While the index continues to decline, researchers at Binance have a different interpretation of the market. According to a previous ABM report, Binance Research in their monthly report released on September 4 claimed that altcoins will rise again relative to Bitcoin, and Bitcoin's market share will eventually drop to around 50%.

According to data platform CoinMarketCap, as of now, Bitcoin's market share has reached a new high for the year at 71.1%, surpassing the previous high in May 2017 before Bitcoin skyrocketed to $20,000 in the bull market.

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