The SharesPost Token Index (“the Index”) posted its first month end above its starting point ever. Since its inception in July 2018, the Index has faltered, reaching lows in correlation to benchmarks BTC and ETH. Yet, through June 30, 2019 the Index is in positive territory and notched a 2 percent rise in its first year. This rise is in part due to Index constituent LINK climbing 624 percent over the course of May and June. Comparatively, the Index rose 54 percent over May and June and still underperformed benchmarks BTC and ETH by double-digit margins.
During the last two months, the Index was led higher by LINK and NPXS. LINK has found great success after its Coinbase listing and clearly surged after that June event. The Chainlink blockchain, the project based off LINK, allows blockchain smart contracts to interact with off-chain APIs and data sources. Pundi X (NPXS) has taken a different approach compared to other blockchain projects. The group is creating hardware that can work in tandem with the distributed ledger and may help address inefficiencies in financial transactions.
REP and BAT led the underperformance pack over May and June; they both approached a 25 percent cut in market cap. While this reduction is not unheard of in crypto markets, their respective losses contributed to the Index’s underperformance. Surely crypto investing is not for the faint of heart and even in times of rising tides not all tokens benefit.
Facebook drew much regulatory ire recently, and not for the reasons they are accustomed to. The social media titan announced in June it would be building out its own cryptocurrency to facilitate commerce. Immediately, regulators around the world issued statements to dampen expectations Facebook would receive their blessings. Notwithstanding this global disapproval, crypto market participants have bid up valuations in anticipation of wider token adoption. Bitcoin doubled in value over May and June and Ethereum appreciated a healthy 80 percent.
While the end version of the Libra project has yet to be seen, its success would build much-needed legitimacy for cryptocurrencies and perhaps usher in a new medium of exchange.
SharesPost Research will be rebalancing the Token Index with values reflecting this change effective July 1. The new Index entrants are ENJ, HT, MCO, MKR, and WTC while AE and BNB will no longer be constituents. The new weightings will be as follows:
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