When organizing the types of cryptocurrency... ? Part 2 (Episode 14)

serialization column：Starting from zero: cryptocurrency trading：Episode 14

Last time, I talked about fiat currencies like the dollar and yen being broadly categorized as “fiat,” while cryptocurrencies are broadly categorized as “crypto,” and within crypto there are largely “currency type” and “asset type.”

This time, I will explain the “asset type.”

Asset Type

Asset, literally meaning "financial asset," here may be easier to understand if described as “stocks.”

Stocks are investments made considering the future prospects, business model, performance, dividends, and shareholder benefits of the company issuing the stock.

The basic mechanism of that iscrypto of the asset type,“the business model itself issues the stock”, which is a way to think about it.

Not all asset-type cryptos have this, but some reward holders (owners) with a portion of profits generated from the business or grant voting rights on important decisions.

Personally,I think this is a very hot field around 2016–2017.

Crowd Sales

This topic is about new cryptos beyond asset type as well.

There are many cases where a business or idea issues crypto called a token during trial operations and funds are raised by purchasing and using them, known as “crowd sale (ICO / crowdfunding / presale).

(tokens are usually the crypto itself after launch) If the business succeeds and with speculative support, the token’s value rises, and those who recognized the potential early and acquired it cheaply can gain substantial returns.

For example, Ethereum, which has the second-largest market capitalization after Bitcoin, expanded to about 60 times its value around seven months after the crowd sale ended (as of 2016.3).

On the other hand, if the business stalls or fails, the token’s value can be lost, or the project itself may be a fraud. Even in crypto investments, careful research and management are required.

Main Features

● There is an issuer.
● The supply can be determined by the developers.
● There is a ceiling on issuance, but it can be changed later.

Notable Asset-Type Cryptos

● MaidSafeCoin
● Scenario (Synereo)
● Storjcoin X
● Bitcrystals
and so on

Market Capitalization Ranking

The market capitalization ranking for existing asset-type cryptos (as of 2016-04-28) is as follows.


You can check all of them on this site(in English).

Summary

Cryptos can be broadly categorized into currency type and asset type!