Results of the IX Digital Asset Industry Classification System (“DAICS®”) 2024 1H Review

HONG KONG SAR –
Media OutReach Newswire – 5 July 2024 – Today, IX Asia Indexes announced the 1st Half 2024 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® 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 (Appendix 1). 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 Sector name under Media & Entertainment (150)/ Social Media & Community Sector. The definition of Social Community sector remains unchanged.

Modification in sector name.

Before

Social Media (15010)

After

Social Media & Community (15010)

ii) Classification Changes

VeChain (VET)

Before

Industry: Tech & Data (140)

Sector: Storage & Sharing (14010)


After


Industry: Infrastructure (120)

Sector: Application Development Protocol & Smart Contract (12010)

iii) Green coins label

There are 9 Greens coins in this review:


Infrastructure (120)
Media & Entertainment (150)
Energy Efficient

Consensus Mechanism

(PoS, PoH, PoA,

DAG, Hashgraph)
1. ETHG

2. ATOMG (New)

3. NEARG

4. DOTG (New)

5. ADAG

6. HBARG
1. IMXG
Renewable Energy Use
1. SOLG (New)

2. VETG (New)
NIL​

iv) Coverage of DAICS®

DAICS® coin coverage: top 50 coins by market capitalization

DAICS® market capitalization coverage: 87.493%*

The % coverage of market capitalization of the 50th ranked coin: 0.092%

Member changes within the TOP 50 coins in DAICS® : 6 coins in and 7 coins out

(For more details about the industry weighting and the 6 changes, please see Appendix 4).

*As of 22nd May 2024, 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 Appendix 2 & 3)



b) Asset Backed Tokens (ABT)


i) Structure and definitions

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. A new ABT registry will be made available to the public. Although there has been an increase in the number of ABTs, ABTs only comprised 0.106% of the total market capitalization of digital assets. 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 19th July, 2024.

For more details on our DAICS® qualification criteria, please email
daics@ix-index.com.

For a full version of the appendixes 1-3, please refer to ix-index official website.

Appendix 4

In and out in DAICS® Top 50 cryptos

In
Out
1.
Bittensor (TAO)
TrueUSD (TUSD)
2.
First Digital USD (FDUSD)
Binance USD (BUSD)
3.
Pepe (PEPE)
Aave (AAVE)
4.
dogwifhat (WIF)
Algorand (ALGOG)
5.
Theta Network (THETA)
Quant (QNT)
6.
Arweave (AR)
MultiversX (EGLD)
7.

Wrapped Bitcoin* (WBTC)



Sector Weighting of the Classification System**

Industry
Weighting (%)
Payment
65.55
Infrastructure
27.10
Financial Services
4.45
Tech & Data
0.73
Media & Entertainment
2.17

*Special Currency Treatment of DAICS® applies

**Based on 22nd May 2024

G: Green Label

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

BCH

LTC
XLM

XMR

CRO

KAS
Stablecoin
USDT

USDC
FDUSD

DAI
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

SOLG

ADAG

TON

AVAX

TRX

NEARG
ICP

APT

ETC

HBARG

VETG

INJ
Interoperability
DOTG

LINK
ATOMG
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
Nil
Staking
LDO
Tech & Data:

Provision of data management and storage, and development of innovative crypto technology

Storage & Sharing
FIL

AR
RND
Data Management
GRT
Artificial Intelligence
TAO
Media & Entertainment:

Recreational and media services. Including content creation and distribution, advertising through crypto-asset incentive mechanisms, gaming and collectibles

Social Media & Community**
DOGE

WIF
SHIB

PEPE
Streaming
THETA
Gaming
IMXG
Metaverse
NIL

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

(**) labelling for change in sector name in this review

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 & Community*

(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

(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)

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

The issuer is solely responsible for the content of this announcement.

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