What is the Red Hare NFT Index and how reliable is it?
The world of crypto can be a little different than what it appears on the face of it. This is why due diligence can be your best friend. After the fall of TerraUSD, and of crypto loan and loan projects such as Celsius and Voyager, the focus is again on due diligence.
Take for example a popular blockchain project, Aptos Labs. It’s in the news because of the multi-million dollar funding it recently raised in a Series A round led by FTX Ventures. But underneath are some concerns that Aptos’ founder, formerly part of Facebook’s Diem crypto project, is facing a billion-dollar lawsuit. Aptos is a very young company and is concerned with Layer 1 solutions.
In the NFT-verse, Red Hare Analytics, which claims to be a Web 3.0 NFT data analytics company, is trending. Let’s explore.
What is the Red Hare NFT Index?
Red Hare is interested in NFT data analysis, and claims to fully capture price trends and other economic movements in the NFT space. The company is said to have launched Asia’s first index dedicated to NFTs in May this year. What it does is track price movements of a “select group” of NFT projects. It claims to provide a reliable indicator of how the NFT sector is performing in terms of sales activity.
Another primary service is helping with NFT Exchange Traded Funds (ETFs). Red Hare states that they support financial platforms in creating ETFs. ETFs are usually a basket of multiple assets, tracking a specific index, and in this case it would be the Red Hare NFT Index. At the time of writing, the index reflects a 24-hour drop of almost 7%. The index’s main NFTs include CryptoPunks, BAYC and Meebits.
According to a recent press release from BOA Financial Group, the Hong Kong-based company has partnered with Red Hare to expand the reach of the latter’s NFT index.
Is Red Hare NFT Index reliable?
The NFT market is very broad, reflecting the cryptoverse, which has tens of thousands of assets. New NFTs can be launched at any time, and recent major participants were Hot Wheels, LimeWire Originals and Alec Monopoly. The Red Hare NFT Index tracks 44 constituents according to the fact sheet, and the list includes games and metaverses.
The other concern is that Red Hare has partnered with new NFT projects, such as Yuliver and DeLotty, recently for launches and giveaways, which may raise eyebrows.
Data provided by CoinMarketCap.com
The bottom line
Red Hare is a new entrant, having launched its NFT index in May 2022. NFTs themselves are very broad, with a new launch every other day. Additionally, prices for NFTs have remained very subdued this year, with most releases including Madonna failing to attract high bids. How the Red Hare NFT Index and related ETFs perform over the long term is a wait-and-see game.
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