Classification of Cryptoassets

CryptoCompare just released its 2018 Cryptoasset Taxonomy Report.

At 79 pages in length, it covers some ground in attempting to put order into the cryptocurrency and blockchain universe.

As noted in the introduction:

The purpose of this taxonomy is to provide an independent classification of cryptoassets, based on the depth, breadth and scope of our global data sets, while adhering to our rigorous data standards to ensure data integrity and accuracy. The taxonomy offers a framework to help retail and institutional investors, regulators and the industry as a whole gain a holistic understanding of the cryptoasset landscape.

The report primarily presents its summary of classifications, including what it refers to as “CryptoCompare archetypes.” These represent what they deem to be “the most natural grouping of cryptoassets at this moment in time.”

Their first order of summary archetype classification is “Fungibles” and “Non-Fungibles.”

Additionally, the report uses four other classification categories:

  • Legal
  • UK Standard Industry Classification
  • Rationale to Possess
  • Economic Value Drivers

The report is valuable to anyone attempting to break the landscape down into an organized framework.

Although there is much useful information, one point that caught my attention was that they could only classify 16 percent of cryptoassets as close to a truly trustless, decentralized network.  For those with philosophical aspirations in favor of blockchain resolving what the internet never was, this may be discouraging.