SharesPost Token Index Ends First Year in Positive Territory
July 24, 2019 | Blog

SharesPost Token Index Ends First Year in Positive Territory

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.

May and June Constituent Performance vs. Benchmarks

Top Performers

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.

Bottom Performers

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.

Constituent Performance vs. Benchmarks Since Inception

Market Commentary: Facebook looks to Libra-lize commerce

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.

Upcoming Token Index Rebalance

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:

Rebalanced Token Weightings Effective July 1st
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This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member 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, involving a high degree of risk, and investors should 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 and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, 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, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member 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, involving a high degree of risk, and investors should 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 and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, 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, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.