SharesPost Token Index: February Shows Signs of Life
March 20, 2019 | Blog

SharesPost Token Index: February Shows Signs of Life

SharesPost Token index down 63 percent since inception, gains ground in February

After a rough 2018 for crypto valuations, we are starting to detect a heartbeat. The SharesPost Token Index gained 27 percent in February, the best monthly performance since its inception. The index and Ethereum both enjoyed greater gains than Bitcoin in February, with Ethereum posting a 27 percent increase and Bitcoin gaining 11 percent.

February Constituents Performance
February Constituents Performance
Source: SharesPost Research; CoinMarketCap; Data as of February 28, 2019

Top Performers

Binance Coin (BNB) was overwhelmingly the best performer in February, jumping 90 percent in the month. The currency probably benefited from a coin burn that started last month, announcements of both the Binance Chain and Binance DEX projects (including a TestNet launch in February), and a number of successful Binance Launchpad-fueled sales. Basic Attention Token (BAT) and the Internet of Services Token (IOST) also posted notable gains of 49 percent and 35 percent respectively. IOST also launched its mainnet in February.

Bottom Performers

The list of tokens which lost value was refreshingly short, with only Holochain (HOT) and Zilliqa (ZIL) posting losses-- 18% and 5% respectively. These results were primarily driven by market volatility, and both tokens were doing relatively well before a drop towards the end of the month. Still, the losses were relatively light compared to what we have seen in the past months.

Source: SharesPost Research; CoinMarketCap; Data as of February 28, 2019
Source: SharesPost Research; CoinAlpha

Market Commentary

Regulation: The Securities and Exchange Commission continues to drag its feet in drafting clear crypto regulation. Notably, the commission has yet to decide whether to approve a number of proposed Bitcoin exchange traded funds (ETFs). Meanwhile, the Israel Securities Authority (ISA) recently published a report that seems to lay the groundwork on how regulators should oversee crypto coins. Other foreign securities agencies have taken similar actions. We will continue to monitor the SEC for any guidance.

Institutional Entry: Major financial institutions have made a number of moves, which should, in aggregate, help move the industry forward. First, Fidelity Investments launched its much-anticipated crypto custody business. While still in the early stages and only available to select clients, such a solution to hold crypto assets represents a significant advancement for the industry. Goldman Sachs is also developing a custody solution. J.P. Morgan last month announced its “JPM Coin” project. Based on a private and proprietary version of Ethereum called Quorum Blockchain, the bank will use the coin to settle transactions between clients of its wholesale payments business. The token marks the first time a major U.S. bank has launched a digital coin.

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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.