1. What is VIX?

Relationship between VIX Index and Cryptocurrency

The VIX Index (Volatility Index) is primarily used to measure the volatility of the US stock market, particularly the implied volatility of the S&P 500 Index (SPX) for the next 30 days. Although the VIX Index itself has no direct correlation with cryptocurrencies, the following points can help understand the indirect relationship between the VIX Index and cryptocurrencies:

1. Market Sentiment Indicator: The VIX Index is regarded as a barometer of market sentiment, reflecting investors' concerns and fears about the market. In the cryptocurrency market, there exists a similar Fear and Greed Index used to gauge investor sentiment about the cryptocurrency market.

2. Risk Management: The VIX Index can serve as a risk management tool, helping investors hedge against market risks. In the cryptocurrency market, investors can employ similar strategies to manage risks, such as purchasing put options to hedge against potential downturns.

3. Volatility Prediction: The VIX Index forecasts the volatility for the next 30 days based on options prices. Although there isn't a direct VIX Index for the cryptocurrency market, investors can use analogous methods to predict cryptocurrency volatility, such as analysing price changes in cryptocurrency options.

In summary, the relationship between the VIX Index and cryptocurrencies mainly encompasses market sentiment indicators, risk management, and volatility prediction. While the VIX Index itself does not directly involve cryptocurrencies, its principles and applications can provide valuable references for cryptocurrency investors.

2. Who Founded VIX?

The Cryptocurrency VIX (CVI) was established in collaboration between COTI Network and VIX founder Professor Dan Galai. Dan Galai is one of the original researchers who proposed the VIX concept and later partnered with COTI Network to develop the cryptocurrency version of VIX, namely CVI.

3. Which Venture Capitals Invested in VIX?

According to the provided search results, there appears to be no direct mention of which venture capital firms have invested in the cryptocurrency VIX. VIX typically refers to the Volatility Index, which is not directly related to cryptocurrencies, but is associated with the implied volatility of options on the US S&P 500 Index.

If you would like to know which venture capitals have invested in cryptocurrency or blockchain-related projects, the following information may be helpful:

• Investments in Blockchain and Cryptocurrency: Many venture capital firms have invested in blockchain and cryptocurrency-related projects, though this information is not specifically mentioned in the provided search results. Typically, venture capital firms investing in cryptocurrency or blockchain projects will announce relevant information on their official websites or in press releases.

• Related Companies: The provided search results mentioned companies such as Coinbase, Bit Digital, Bitdeer, and Bitfarms, which are associated with cryptocurrency and blockchain; however, there is no specific mention of which venture capitals have invested in these companies.

In conclusion, based on the provided search results, it is not possible to directly determine which venture capitals have invested in cryptocurrency VIX because VIX typically refers to a volatility index related to US stocks rather than cryptocurrency.

4. How Does VIX Work?

The VIX (Volatility Index) itself is an index used to measure the implied volatility of the S&P 500 Index for the next 30 days, while the cryptocurrency VIX index is based on a similar concept used to assess the volatility of the cryptocurrency market. Below are the operational principles of the Cryptocurrency VIX Index (CVI):

1. Concept: CVI is the VIX index for cryptocurrencies, tracking the volatility of the cryptocurrency market. It was created in collaboration between the COTI team and the original creator of VIX, Professor Dan Galai.

2. Operating Principle: CVI measures implied volatility by averaging the weighted prices of cryptocurrency options. It reflects investors' expectations of future volatility in the cryptocurrency market.

3. Range: CVI's range is between 0 and 200, categorised into low volatility (0-85), medium volatility (85-105), and high volatility (105-200).

4. Trading Methods: Investors can profit from CVI in the following two ways:

5. Betting on Volatility: If predicting that future volatility will increase, one can purchase CVOL tokens linked to the CVI index.

6. Profiting from Others' Bets: One can deposit USDC into Theta Vault as a long-term investment to earn interest; however, it is essential to note that one may incur losses when CVI surges dramatically.

7. Important Considerations: The CVOL token has built-in funding fees; the lower the CVI, the higher the fees, manifested as daily Negative Rebase, resulting in a decrease in the number of CVOL tokens.

In essence, the cryptocurrency's VIX Index (CVI) is an index used to gauge the volatility of the cryptocurrency market, predicting future volatility through the weighted average of cryptocurrency options prices, providing opportunities for investors to profit from volatility.