Results of the IX Digital Asset Industry Classification System ("DAICS®") 2023 2H Review
- Written by Daily Sun
DAICS® classifies digital assets into 2 main categories: a) Cryptocurrencies and b) Asset Backed Tokens and a 3-tier system for each category. For Cryptocurrencies: 1-Industry/2-Sector/3-Sub-sector; for Asset Backed Tokens: 1-Asset Type/2-Branch/ 3-Sub-branch. The results are as follows:
a) Cryptocurrencies
i) Structure and definitions
Tier 1: Industry Changes
The industry groups remain unchanged with 5 industries.
1) Payment (110)
2) Infrastructure (120)
3) Financial services (130),
4) Tech & Data (140) and
5) Media & Entertainment (150).
Tier 2: Sector Changes
The number of sectors remain unchanged with 16 sectors. There is modification in definition under Tech& Data (140)/ Storage & Sharing sector.
Modification in sector name and definition.
Before After
File Storage & Sharing (14010) Storage & Sharing (14010)
Updated Sector 14010 definition:
Under DAICS®, Crypto assets/protocols that "provide decentralized storage
and/or sharing of data filing and resources"
ii) Classification Changes
Immutable (IMX)
Before After
Industry: Infrastructure (120) Industry: Media & Entertainment (150)
Sector: Scaling & Sharding (12030) Sector: Gaming (15030)
iii) Green coins label
There are 6 Greens coins in this review:
HBARG
ETHG
ADAG
NEARG
ALGOG
IMXG
First 5 of them come from Infrastructure industry, while IMX is from Media & Entertainment industry.
iv) Coverage of DAICS®
DAICS® coin coverage : top 50 coins by market capitalization
DAICS® market capitalization coverage: 96.878%*
The % coverage of market capitalization of the 50th ranked coin: 0.069%
Member changes within the TOP 50 coins in DAICS® : 7
(For more details about the industry weighting and the 7 changes, please see Appendix 4).
*As of 6th December 2023, based on past 90 days market capitalization ranking including all coins* (exclude stable coins and pure DAO governance tokens)
Note: G as 'Green' labelling for cryptocurrencies that adhere to the principles of sustainability
* * (For details on Industry & Sector definitions under DAICS®, please refer to official website: ix-index.com)
b) Asset Backed Tokens (ABT)
i) Structure and definitions
Modification in definition
Before
An ABT shall be supported by a tangible asset or a representation of a tangible asset in a defined and known exchange ratio between the ABT and the related asset.
After
An ABT shall be supported by a tangible real-world asset or a representation of a tangible asset in a defined and known exchange ratio between the ABT and the related asset.
Tier 1: Asset Types Changes
The asset types remain unchanged at 6
1) Culture (205),
2) Real Estate (215),
3) Financials (235),
4) Entertainment (255),
5) Natural Resources (265), and
6) Green Economy (275)
Tier 2: Branch Changes
The branches remain unchanged at 31.
(For details on Asset types and Branches, please refer to Appendix 3).
ii) Classification Changes
Nil
iii) Coverage of DAICS®
IX Asia Indexes has not started to classify any ABT. ABTs will be added to DAICS® in the next stage when a fair amount of popular asset-backed tokens are available in the market. Although there has been an increase in the number of asset-backed tokens, no
significant use cases with proper market policy have emerged. A new ABT registry will be made available to the public. A classification summary and definition table are available at Appendix 5 & 6.
For further information regarding the methodology of the DAICS®, please refer to the "IX Digital Asset Industry Classification System"- principle and guiding methodology on the company website https://ix-index.com/daics.html.
All classification changes including the ixCrypto Infrastructure Index and ixCrypto Stablecoin index will take effect on 1st February, 2024.
For more details on our DAICS® qualification criteria, please email daics@ix-index.com.
Appendix 1
The structure of DAICS®
Please refer to company website www.ix-index.com
Appendix 2
IX Digital Asset Industry Classification System ("DAICS®")
Please refer to company website www.ix-index.com
Appendix 3
DAICS Updated Cryptocurrencies Industry-Sector diagram
DAICS current ABT Asset Types diagram
Please refer to company website www.ix-index.com
Appendix 4
In and out in DAICS® Top 50 cryptos
| | In | Out |
| 1. | Kaspa (KAS) | ApeCoin (APE) |
| 2. | Mantle (MNT) | Fantom (FTMG) |
| 3. | Optimism (OP) | EOS (EOS) |
| 4. | Thorchain (RUNE) | Pax Dollar (USDP) |
| 5. | Immutable (IMXG) | The Sandbox (SAND) |
| 6. | Injective (INJ) | Decentraland (MANA) |
| 7. | Render (RNDR) | Axie Infinity (AXS) |
Sector Weighting of the Classification System*
| Industry | Weighting (%) |
| Payment | 69.00 |
| Infrastructure | 25.10 |
| Financial Services | 4.09 |
| Tech & Data | 0.43 |
| Media & Entertainment | 1.39 |
Green labels
Appendix 5
Classification of top 50 coins by Market Capitalization
| Category | Industry | Sector | Cryptocurrencies | |
| Cryptocurrencies | Payment: Blockchain based money, designed for transactional purposes. This includes daily transactions usage and stablecoins. | Transaction & Payment | BTC XRP TON LTC BCH | XLM XMR CRO KAS |
| Stablecoin | USDT USDC DAI | TUSD BUSD | ||
| Infrastructure: Bedrock blockchain that facilitates the operation of other decentralised applications. This includes the creation and running of dedicated blockchain platforms, achieving interoperability between networks, increasing the amount or speed of transactions etc | Application Development Protocol & Smart Contract | ETHG SOL ADAG TRX LINK AVAX ETC | HBARG ICP APTOS NEAR INJ ALGOG | |
| Interoperability | DOT ATOM | WBTC QNT | ||
| Scaling & Sharding | MATIC MNT OP | ARB STX | ||
| Supporting System | Nil | | ||
| Financial services: Tokens that provide on-chain asset management services, crypto-exchange services, funding, lending and other capital markets related services | Exchange Tokens | BNB LEO OKB | UNI RUNE | |
| Lending & Borrowing | AAVE | | ||
| Staking | LDO | | ||
| Tech & Data: Provision of data management and storage, and development of innovative crypto technology | Storage & Sharing** | FIL VET | RNDR | |
| Data Management | GRT | | ||
| Artificial Intelligence | Nil | | ||
| Media & Entertainment: Recreational and media services. Including content creation and distribution, advertising through crypto-asset incentive mechanisms, gaming and collectibles | Social Media | DOGE | SHIB | |
| Streaming | Nil | | ||
| Gaming | IMXG | | ||
| Metaverse | EGLD | | ||
(**) labelling for change in definition in this review
Purple as for wrapped cryptocurrencies that are classified but not included as top 50 due to duplication of market cap
Appendix 6
IX Digital Asset Industry and Sector Classification System ("DAICS®")
| Category | Industry | Sector | Sector definition |
| Cryptocurrencies (1) | Payment: (110) Definition Blockchain based money, designed for transactional purposes. This includes daily transactions usage and stablecoins. | Transaction & Payment (11010) | Cryptocurrencies that are used for store of value, unit of account, medium of exchange |
| Stablecoin (11020) | Cryptocurrencies where price is pegged to a / a basket of reference asset | ||
| Infrastructure: (120) Definition Bedrock blockchain that facilitates the operation of other decentralised applications. This includes the creation and running of dedicated blockchain platforms, achieving interoperability between networks, increasing the amount or speed of transactions etc. | Application Development Protocol & Smart Contract (12010) | layer-1 blockchain network that facilitates DApp creation and smart contract execution and smart contract | |
| Interoperability (12020) | Network that increases inter-connectivity and integration of the fragmented cryptocurrency ecosystem | ||
| Scaling & Sharding (12030) | Networks that increase the ability to cope with the influx of many transactions at a time and blockchain network that can be split into smaller partitions, to improve scalability and process transactions quicker | ||
| Supporting System (12040) | Networks/sidechains that improve functionality of layer-1 network | ||
| Financial services: (130) Definition Tokens that provide on-chain asset management services, crypto-exchange services, funding, lending, and other capital markets related services | Exchange Tokens (13010) | Cryptocurrencies that represent the stable coin in the exchange ecosystem and allow users to covert from digital asset on decentralised or centralised system int fiat currencies | |
| Lending & Borrowing (13020) | Borrowing and lending crypto assets with interest in return and other secondary financial tools derived from primary underlying asset, such as crypto futures and options | ||
| Staking (13030) | Holding and "staking" of certain amount of cryptocurrency in a wallet to facilitate network operations | ||
| Tech & Data: (140) Definition Provision of data management and storage, and development of innovative crypto technology | Storage & Sharing* (14010) | Crypto protocols that provide decentralized storage and/or sharing of data filing and resources. | |
| Data Management (14020) | Networks/Protocols that facilitate the indexing and querying of data from blockchain(s), enabling efficient data retrieval and management for decentralized applications | ||
| Artificial Intelligence (14030) | Cryptos/Protocols that facilitate the use of AI powered apps or projects directly using blockchain platform. | ||
| Media & Entertainment: (150) Definition Recreational and media services. Including content creation and distribution, advertising through crypto-asset incentive mechanisms, gaming and collectibles | Social Media (15010) | Cryptos that provides mast social community and followers without a close secondary industry sector | |
| Streaming (15020) | Cryptos that provides rights to access decentralised video-streaming sites | ||
| Gaming (15030) | Cryptos which mainly used in gaming or gaming supporting industry | ||
| Metaverse (15040) | Cryptos that is commonly used in collective virtual open space, created by the convergence of virtually enhanced physical and digital reality. This includes the use of VR and/or AR and/or 3D. |
DAICS® Asset Type Definitions
| Category | Asset Type | Branch | Sub -branch |
| Asset-Backed Tokens (2) | Culture: (205) Definition Real asset relating to sports, art, cultural drama, festive collectibles and design IPs etc. | Art (20510) | This shall be further developed in the future with more digital assets available in the market |
| Sports (20520) | |||
| Festive Collectibles (20530) | |||
| Design IPs (20540) | |||
| Drama and Play IPs (20550) | |||
| Real Estate:(215) Definition Assets that mainly derived its valuation from property, real estate, and land | Commercial Property (21510) | ||
| Residential Property (21520) | |||
| Governmental Property (21530) | |||
| Residential and Commercial Land (21540) | |||
| Financials: (235) Definition Real financial asset including listed company shareholdings on regulated centralised exchanges and private company shareholdings; debt instruments; property trusts and derivatives that settled on regulated exchange (CeFi and DeFi). | Tokenised Securities (Company Securities, ETF) (23510) | ||
| Tokenised Debts (23520) | |||
| Tokenised REITs (23530) | |||
| Entertainment: (255) Definition Ownership of the IPs assets in the area of entertainment in real world such as concert, play, shows, circus, musicals, songs, movies, games, events and programs, and souvenir collectibles that is derived from the above areas. | Movies (25510) | This shall be further developed in the future with more digital assets available in the market Following definition of the United Nations 17 sustainable development goals² | |
| Songs (25520) | |||
| Concerts (25530) | |||
| Gaming(NEW) (25540) | |||
| All Other Entertainment Events and Collectibles (25550) | |||
| Natural Resources: (265) Definition Natural resources asset that derived directly from sea, sky, atmosphere and underground and can be classified as a commodity with standardisation such as precious metals, agricultural, energy and metals. | Precious Metals (26510) | ||
| Agricultural (26520) | |||
| Energy (26530) | |||
| Metals (26540) | |||
| Green Economy(275) Definition Ownership of Projects Asset that falls under the definition of the UN 17SDG²s, with over 80% of the income or jobs provided on these 17 initiatives. | No Poverty & Zero Hunger (27510) | ||
| Good Health and Well-Being (27520) | |||
| Quality Education (27530) | |||
| Gender Equality (27540) | |||
| Clean Water and Sanitation/Affordable and Clean Energy (27550) | |||
| Decent Work and Economic Growth/ Industry, Innovation, and Infrastructure/ Partnerships for the Goals (27560) | |||
| Reduced inequalities/ Peace, Justice and Strong Institutions (27570) | |||
| Sustainable Cities and Communities/Responsible Consumption and Production (27580) | |||
| Climate Action (27590) | |||
| Life Below Water & Life on Land (27500) |
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The issuer is solely responsible for the content of this announcement.
About DAICS®
DAICS® covers both cryptocurrencies and asset-backed tokens ("ABT"), to be reviewed semi-annually at the end of June and December. On cryptocurrencies side, it is a three-tier system that groups cryptocurrencies into 5 main industries: 1) Payment, 2) Infrastructure, 3) Financial services, 4) Technology & Data and 5) Media & Entertainment. These industries are further divided into 16 industry sectors and sub-sectors to be introduced in the future. Under asset-backed tokens, there are 6 asset types: 1) Culture, 2) Real Estate, 3) Financials, 4) Entertainment, 5) Natural Resources, 6) Green Economy. These asset types are further divided into 31 branches and sub-branches to be introduced in the future.
About IX Asia Tokenization Advisory Committee and Working Group
The establishment of the IX Asia Tokenisation Advisory Committee ("Advisory Committee") is to pursue the goal and vision to formulate a standard for global tokenization framework in a compliant and transparent way. The key role of the Advisory Committee is to formulate the guideline and reference for tokenization in terms of infrastructure, business financial stability, sustainability, internal control and classification. The Advisory Committee is comprised of industry recognised leaders from blockchain consultancy, sustainable projects and field in Art industry.
The establishment of the Working Group is to identify, evaluate and recommend key directions and founding principles according to their specific industry knowledge and expertise in relating to the creation of the specified token. It will examine and propose improvements to the guidelines and references for tokenization. The working group is formed of a diverse group of market experts representing relevant sectors and markets, to provide input and discuss case studies for creation of tokenization framework, best practices and development of real-world projects.
For more information about IX Asia Tokenization Advisory Committee & Working Group, please visit https://ix-index.com/tokenization-committee.html.