SharesPost Token Index: A Surprise January Gain As ETH upgrades on HODL trades
February 15, 2019 | Blog

SharesPost Token Index: A Surprise January Gain As ETH upgrades on HODL trades

Despite the prevailing negative sentiment in Crypto markets, the SharesPost Token Index actually rose in January. The surprise performance marks only the second time the Index has grown since its inception and comes just two months after BTC and ETH suffered big losses, declines of 37 percent and 43 percent respectively in November.

January constituents performance
January constituents performance
Source: SharesPost Research; CoinMarketCap

Top performers

Tokens HOT, NPXS, and LINK led the Index in rank order. HOT increased 2.5x during the first month of the year driven thanks to the launch Holo Mainnet and its founders’ decision to exchange the token on a 1:1 basis for Holo Fuel, the new network currency. NPXS holders will receive 65 percent of a new token dubbed “f(x).” Since the f(x) token will not be available for sale, speculators likely clamored for NPXS to be included in the f(x) distribution, in turn driving its price higher.

Bottom performers

Conversely, OMG, PPT, ZRX saw the largest respective declines in January with OMG losing nearly a quarter of its value. Market sentiment, not any one material event, likely drove the fall. However, the drop-offs were not too severe, at least by Crypto standards. Investors may see the slowing rate of declines as a sign of good things to come. Perhaps the bottom is in sight.

Constituents performance since July 01, 2018

Only HOT and LINK reside in the black since the Index debuted last year. Both tokens saw robust increases in value this past month, pushing their performance well above their Index peers. By contrast, ETH has lost over three fourths of its value over the last six months, perhaps due to delays in the Plasma upgrades and the general dearth of coin offerings.

Source: SharesPost Research; CoinMarketCap

Index performance since July 1, 2018

January was one of the least volatile months for the Index since its inception. The Index increased a modest 3.6 percent over the course of January, a welcome change to the chill of this Crypto Winter. We will continue to monitor digital asset prices and will look for multi-month consecutive growth before we are confident that market sentiment has changed for the better.

Source: SharesPost Research; CoinAlpha

Market Commentary: ETH upgrades on HODL?

Investors had expected ETH founders in January would finally upgrade the third most valuable cryptocurrency by market cap. Constantinople was supposed to go live once miners mined the 7,080,000th block on the Ethereum blockchain around January 16. However, the day before the scheduled upgrade, programmers discovered a security flaw, prompting another code audit. ETH founders ultimately pushed back Constantinople to the 7,280,000th block or roughly February 27, 2019. Nonetheless, ETH creators said other upgrades, namely Casper, will proceed on time.

Other notable developments include a potential Bitcoin custody solution by Fidelity Digital Assets, which could come to market as early as March. Also, the CBOE re-submitted the VanEck/SolidX Bitcoin ETF proposed rule change while TokenSoft launched its beta enterprise custody solution for security tokens and cryptocurrencies.

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CONFLICTS: This report is being published by SharesPost Research LLC and distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation, and SP Investments Management LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost Inc. SP Investments Management is the investment manager of the SharesPost 100 Fund, a registered investment company, and other funds.

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Analyst compensation is based upon various factors, including the overall performance of SharesPost Inc. and its subsidiaries and the performance and productivity of such analyst, including (1) feedback from clients of the SharesPost Financial Corporation and other stakeholders in our ecosystem, (2) the quality of such analyst’s research, and (3) the analyst’s contribution to the growth and development of our overall research effort. Analyst compensation is derived from all revenue sources of SharesPost Inc., including brokerage sales.

DISCLAIMER: This report does not contain a complete analysis of every material fact regarding any issuer, industry, or security. The opinions expressed in this report reflect our judgment at this date and are subject to change. The information contained in this report has been obtained from sources we consider to be reliable; however, we cannot guarantee the accuracy of all such information.

Any securities offered are offered by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative and involves a high degree of risk. It should only be considered as a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks. You should complete your own independent due diligence regarding the investment, including obtaining additional company information, opinions, financial projections, and legal or other investment advice.

Investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, SharesPost Investment Management, the SharesPost 100 Fund, and the SharesPost 100 List are all registered trademarks of SharesPost Inc. All other trademarks are the property of their respective owners.

Copyright © SharesPost, Inc. 2019. All rights reserved.

Alejandro Ortiz

Alejandro Ortiz

Alejandro is a Research Analyst, Private Investment Research for SharesPost Research LLC. Prior to joining SharesPost, he was a Valuation Analyst at Duff & Phelps with a focus on TMT industries.
Please Read These Important Legal Notices and Disclosures

CONFLICTS: This report is being published by SharesPost Research LLC and distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation, and SP Investments Management LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost Inc. SP Investments Management is the investment manager of the SharesPost 100 Fund, a registered investment company, and other funds.

Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own personal financial advisors before making any investment decisions based on this report. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction. This report does not constitute an offer to provide investment advice or services. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or advisability of a particular investment or transaction, (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Information regarding companies in the SharesPost 100 List available on the website has been collected from or generated from publicly available sources. The availability of company information does not indicate that these companies have endorsed, supported, or otherwise participated with SharesPost. Company “thesis” is the opinion of SharesPost and is not a recommendation to buy, sell, or hold any security of such company.

Investors should be aware that, at any given point in time, the SharesPost 100 Fund (the “Fund”) may or may not have an ownership interest in any of the issuers discussed in the report. Accordingly, investors should not rely on the content of this report when deciding whether to buy, hold, or sell interests in the Fund. Instead, investors are encouraged to do their own independent research. Before investing in the Fund, investors are cautioned to carefully consider the investment objectives, risks, charges, and expenses before investing. For a prospectus containing more information about the Fund, please visit www.sharespost100fund.com. Read the prospectus carefully before investing.

ANALYST CERTIFICATION: The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about any and all of the subject securities or issuers and that no part of such analyst compensation was, is, or will be, directly or indirectly related to the specific views contained in this report.

Analyst compensation is based upon various factors, including the overall performance of SharesPost Inc. and its subsidiaries and the performance and productivity of such analyst, including (1) feedback from clients of the SharesPost Financial Corporation and other stakeholders in our ecosystem, (2) the quality of such analyst’s research, and (3) the analyst’s contribution to the growth and development of our overall research effort. Analyst compensation is derived from all revenue sources of SharesPost Inc., including brokerage sales.

DISCLAIMER: This report does not contain a complete analysis of every material fact regarding any issuer, industry, or security. The opinions expressed in this report reflect our judgment at this date and are subject to change. The information contained in this report has been obtained from sources we consider to be reliable; however, we cannot guarantee the accuracy of all such information.

Any securities offered are offered by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative and involves a high degree of risk. It should only be considered as a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks. You should complete your own independent due diligence regarding the investment, including obtaining additional company information, opinions, financial projections, and legal or other investment advice.

Investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, SharesPost Investment Management, the SharesPost 100 Fund, and the SharesPost 100 List are all registered trademarks of SharesPost Inc. All other trademarks are the property of their respective owners.

Copyright © SharesPost, Inc. 2019. All rights reserved.