Results of the IX Digital Asset Industry Classification System (“DAICS®”) Review

HONG KONG SAR –
Media OutReach – 12 July 2023 – Today, IX ASIA INDEXES announced the 1^st Half 2023 Review of the IX Digital Asset Industry Classification System (“DAICS^®“), aiming to provide the professionals worldwide with a transparent and standardized classification scheme to determine sector and exposure of particular digital assets. DAICS^® classify digital assets into 2 main categories: a) Cryptocurrencies and b) Asset Backed Tokens and a 3-tier system for each categories (Appendix 1). The results are as follows:

Cryptocurrencies

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).

Sector Changes

The sectors increased from 13 to 16.

Additions:

Staking (13030)

Data Management (14020)

Artificial Intelligence (14030)

(For details on Industry & Sector definitions under DAICS^®, please refer to Appendix 2 & 3).

Classification Changes

Cardano (ADA)

FROM:

Industry: Payment (110)

Sector: Transaction & Payment (11010)

TO:

Industry: Infrastructure (120)

Sector: Application Development Protocol & Smart Contract (12010)

Green coins

There are 5 Greens coins in this review

HBAR^G

ETH^G

ADA^G

ALGO^G

FTM^G

They all come from Infrastructure industry

Coverage of DAICS^®

The coverage remains unchanged with 50 coins.

The market capitalization coverage (all coins): 94.63%*

The % coverage of market cap of the 50th ranked coin: 0.08%

Member changes within the TOP 50 coins in DAICS^® : 8

(For more details about the industry weighting and the 8 changes, please see Appendix 4).

*As of 30th June 2023 based on past 90 days market capitalisation ranking including all coins (stable coins and no exclusions due to any rules).

Note: G as ‘Green‘ labelling for cryptocurrencies that adhere to the principles of sustainability

Asset Backed Tokens (ABT)

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)

Branch Changes

The branches increased from 30 to 31.

Additions:

1) Gaming (25540)

(For details on Asset types and Branches, please refer to Appendix 3).

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 guilding methodology on the company website
https://ix-index.com/daics.html.

All classification changes including the relating ixCrypto industry indexes will take effect on 1 August 2023.

For more details on our DAICS^® qualification criteria, please email
[email protected].

Appendix 1

The structure of DAICS^®

Appendix 2

IX Digital Asset Industry Classification System (“DAICS^®“)

Appendix 3

DAICS updated Cryptocurrencies Industry-Sector diagram

DAICS updated ABT Asset Types-Branch diagram

Appendix 4

In and out in DAICS^® Top 50 cryptos

	In	Out
1.	Wrapped Bitcoin (WBTC)	FTX Token (FTT)
2.	Lido DAO (LDO)	Theta Network (THETA)
3.	Aptos (APT)	Tezos (XTZG)
4.	Arbitrum (ARB)	Axie Infinity (AXS)
5.	The Graph (GRT)	Flow (FLOW)
6.	Fantom (FTMG)	Chiliz (CHZ)
7.	Stacks (STX)	Bitcoin SV (BSV)
8.	Pax Dollar (USDP)	Terra Classic (LUNC)

Sector Weighting of the Classification System*

Industry	Weighting (%)
Payment	65.00
Infrastructure	27.45
Financial Services	5.31
Tech & Data	0.43
Media & Entertainment	1.81

*Based on 30^th June 2023

Appendix 5

Classification of top 50 coins by Market Capitalisation*

Category	Industry	Sector	Cryptocurrencies
Cryptocurrencies	Payment: Blockchain based money, designed for transactional purposes. This includes daily transactions usage and stablecoins.	Transaction & Payment	BTC XRP LTC TON	XMR XLM BCH CRO
		Stablecoin	USDT USDC BUSD	DAI TUSD USDP
	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 ADAG SOL TRX AVAX LINK ETC	ICP APTOS HBARG NEAR ALGOG FTMG EOS
		Interoperability	DOT WBTC	ATOM QNT
		Scaling & Sharding	MATIC 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	UNI OKB
		Lending & Borrowing	AAVE
		Staking(NEW)	LDO
	Tech & Data: Provision of data management and storage, and development of innovative crypto technology	File Storage & Sharing	VET	FIL
		Data Management(NEW)	GRT
		Artificial Intelligence(NEW)	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	APE
		Metaverse	EGLD MANA	SAND

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(NEW) (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	File storage & Sharing (14010)	Cryptos that provide decentralised filing storage services and sharing
		Data Management(NEW) (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(NEW) (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
		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)	Following definition of the United Nations 17 sustainable development goals²
		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)

² United Nations 17 sustainable development goals covering 1) No Poverty 2) Zero Hunger 3) Good Health and Well-Being 4) Quality Education 5) Gender Equality 6) Clean Water and Sanitation 7) Affordable And Clean Energy 8) Decent Work and Economic Growth 9) Industry, Innovation and Infrastructure 10) Reduced inequalities 11) Sustainable Cities and Communities 12) Responsible Consumption and Production 13) Climate Action 14) Life Below Water 15) Life on Land 16) Peace, Justice and Strong Institutions and 17) Partnerships for the Goals
https://sdgs.un.org/goals

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