{"id":10256,"date":"2023-02-08T13:13:16","date_gmt":"2023-02-08T13:13:16","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=10256"},"modified":"2023-02-08T13:13:17","modified_gmt":"2023-02-08T13:13:17","slug":"coingecko-and-21shares-propose-global-crypto-classification-standard","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10256","title":{"rendered":"CoinGecko and 21Shares propose global crypto classification standard"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Major cryptocurrency data aggregator CoinGecko and crypto investment firm 21Shares have joined forces to launch a global standard for classifying various types of cryptocurrencies.<\/p>\n<p>On Feb. 8, CoinGecko and 21Shares released The Global Crypto Classification Standard report, proposing a uniform method to categorize crypto assets. The effort aims to help investors and regulators better understand the specifics of each asset class in crypto, including potential failures like those seen by the industry in 2022.<\/p>\n<p>\u201cSince Bitcoin\u2019s inception around 13 years ago, thousands of unique crypto assets and protocols have emerged, each with unique characteristics and different value propositions,\u201d Carlos Gonzalez, research analyst at 21Shares\u2019 parent firm 21.co, told Cointelegraph, adding:<\/p>\n<p>\u201cUnlike traditional financial assets, cryptoassets can vary dramatically in nature, both as it relates to the asset itself and the protocol behind it.\u201d<\/p>\n<p>At the time of writing, there are more than 12,000 diverse crypto assets listed on CoinGecko\u2019s website, with each coin having its unique characteristics and features. CoinGecko and 21Shares\u2019 classification standard is based on three categorization levels, differentiating these thousands of assets by stack, market sectors, industries and taxonomy.<\/p>\n<p>The first level, dubbed \u201cCrypto Stack,\u201d breaks down crypto assets into classes like cryptocurrencies, smart contract platforms, centralized applications, decentralized applications, interoperability blockchains and others. The methodology only refers to networks or protocols in the first two levels instead of the underlying token.<\/p>\n<p><em>Six examples of \u201cCrypto Stack\u201d classification. Source: 21Shares and CoinGecko<\/em><\/p>\n<p>The second level, called \u201cMarket Mapping by Sectors and Industries,\u201d further divides cryptocurrencies by segments like infrastructure, metaverse, decentralized finance (DeFi), as well as groups like payment platform, lending, developer tooling and others. As some protocols might fit into multiple industries, the methodology attempts to place the assets in the most relevant category in such cases.<\/p>\n<p>The third level, \u201cTaxonomy of Crypto assets,\u201d classified crypto assets according to related asset \u201csuperclass,\u201d based on the cryptocurrency taxonomy system proposed by crypto analyst Chris Burniske in 2019. Burniske\u2019s system follows Robert Greer\u2019s 1997 paper \u201cWhat is an Asset Class Anyway?\u201d categorizing crypto assets across their superclasses like capital assets, consumable or transformable assets and store of value assets.<\/p>\n<p>Some of the examples in the store of value asset category include Bitcoin (BTC), Monero (XMR), Zcash (ZEC) and Dogecoin (DOGE). This type of crypto assets \u201ccannot be consumed; nor can it generate income. Nevertheless, it has value; it is a store of value assets,\u201d the proposed classification standard reads.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>The world must take a \u2018collective action\u2019 approach to regulations \u2014 India\u2019s finance minister<\/em><\/strong><\/p>\n<p>CoinGecko and 21Shares\u2019 effort to bring a global crypto classification standard is one of many global efforts to categorize cryptocurrencies. On Feb. 3, the Australian Treasury released a consultation paper on \u201ctoken mapping,\u201d aiming to have its own taxonomy of crypto assets. Previously, Belgium\u2019s Financial Services and Markets Authority was also seeking feedback on its classification of crypto assets as securities, investment instruments or financial instruments in July 2022.<\/p>\n<p>\u201cWhile the classification of digital assets is quite commonplace, many classification efforts are one-dimensional and confuse traditional investors by mixing crypto assets \u2014 the investable tokens \u2014 directly with the protocols behind them,\u201d Gonzalez said.<\/p>\n<p>The exec also expressed confidence that 21Shares\u2019 collaboration with CoinGecko \u2014 a major independent crypto data website \u2014 will allow the newly proposed standard to appeal to both retail and institutional investors, as well as policymakers across the world.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/coingecko-and-21shares-propose-global-crypto-classification-standard\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Major cryptocurrency data aggregator CoinGecko and crypto investment firm 21Shares have joined forces to launch a global standard for classifying various types of cryptocurrencies. On Feb. 8, CoinGecko and 21Shares released The Global Crypto Classification Standard report, proposing a uniform method to categorize crypto assets. The effort aims to help investors and regulators better understand [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-10256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10256"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10256\/revisions"}],"predecessor-version":[{"id":10258,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10256\/revisions\/10258"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10257"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}