Sector indices are common in equities markets. Brave New Coin uses its extensive crypto-asset taxonomy to produce indices reflecting different segments of the crypto industry.
In 1999, MSCI and S&P Dow Jones Indices developed the Global Industry Classification Standard (GICS), seeking to offer an efficient investment tool to capture the breadth, depth, and evolution of industry sectors. Brave New Coin (BNC) has extended this industry standard to include two tiers of sector classifications to identify smaller crypto-asset categories based on the service they provide.
Exchange Tokens are a subsector that enjoyed more growth than other industry subsectors through 2019. The BNC Exchange Token index is an equal-weighted index consisting of the five largest exchange tokens, ranked by free-float market capitalization.
Exchange tokens offer holders utility in the form of discounts on trading fees and other platform-specific benefits. As such, price-performance is often tied to the success of the exchange they were issued by. The exchange token index and most of its constituents outperformed Bitcoin (BTC) this year.
CURRENT EXCHANGE TOKEN INDEX CONSTITUENTS:
Binance Coin ($BNB) is the native Binance Chain token of crypto mega exchange Binance. Unlike previous quarters, where BNB saw strong, early 2020 brought modest gains for BNB relative to the other exchange tokens.
OKB ($OKB) is the global utility token of OKEx exchange. Launched in March 2018, it outperformed the wider market during the first quarter of 2020. At the same time OKEx launched a public blockchain, OKChain, and issued a native token, OKT. In the seven days following the launch, OKB surged over 24% and posted an all-time price high.
Huobi Token ($HT) is the native token of Huobi Global exchange and enables users to purchase monthly plans for transaction fee discounts. The token’s success through Q1 2020 is closely tied to the exchanges almost 78% increase in aggregate trading volume compared to Q4 2019. This rise in demand for the token was matched by an increase in token burning, adding to the upward price pressure.
FTX Token ($XFTT) is an ERC-20 token native to the FTX derivative and spot exchange. Like Huobi, FTX has also seen an increase in aggregate volume through the first quarter of 2020, as well as a range of new products such as the FTX Pro App, volatility tokens, and oil futures.
Kyber Network Crystal ($KNC) is an Ethereum token that fuels operations on Kyber Network. KNC has been the best performer in the Exchange Token Index constituents during 2020, driven mostly by a planned upgrade to the Kyber Network that will allow holders to earn a yield on their tokens through staking. This added utility saw a sharp increase in the number of daily active addresses using KNC throughout the last 3 months.
More information and a sample of BNC’s General Taxonomy For Cryptographic Assets can be found here.