Monthly sector analysis April 2020

Index Performance

The index performed around 36%, with some winning and some losing sectors (please see monthly performance relative to Index). One winning sectors was SoV, with an outperformance of 14%; the Payment sector underperformed by 7.75%.

SoV (Store of Value)

DGB (DigiByte) contributed positively with a performance of 222%. DigiByte is a modification of the Bitcoin protocol design that adjusts confirmation speeds and security assurances when transacting on the base layer. The genesis block was created on January 10, 2014, with an outstanding supply of 105 million. The overall supply is capped at 21 billion. General consensus is proof-of-work with a 15 second block time. DigiByte has rapidly grown as a public decentralised platform. The platform is believed to be hack proof and impossible to destroy. The creator of DGB, Jared Tate, recently reported that DGB has surpassed the 13 billion circulating supply mark. There are 8 billion DGB left to be mined over the next decade.

File Storage

SC (Siacoin) is decentralised, peer-to-peer, cloud data storage platform built on blockchain technology. It is a native token type with a proof-of-work consensus algorithm. The genesis block was created on June 6, 2015 with no capped supply. Sia has been built as a derivative of bitcoin, with the additional required support for the creation and enforcement of contracts. The native token of the platform enables several functions in the environment, such as transactions, hosting, renting data storage, and file encryption. Like most of the crypto market, SIA lost a significant amount of value on March 12, 2020, but has recovered quite well. On March 18, Sia revealed that multiple updates were made to their blockchain and Skynet system. Skynet used to have several bugs and lacked flexibility, but now enables the sharing of files and hosting websites in a much better way.

LAMB (Lambda) is a decentralised cloud storage solution. The organisation is based in Asia, mainly in Singapore and in China. LAMB is a token operating on the Ethereum platform with a current supply of 6 billion and approx. 647 million in circulation.

Entertainment

THETA and ENJ are both on the Shit Index with an equal weighting. The Theta token is a decentralised video streaming and content delivery network. The genesis block was created on March 15, 2019 with a proof-of-stake consensus algorithm. Theta partnered with WPT to launch a 24/7 live poker channel. ENJ (Enjin Coin) is a gaming community platform and virtual goods marketplace. The organisation is based in the US and Singapore. The ERC-20 token was launched in August 2017 with an outstanding supply of 1 billion. 20% is in the hands of the founders and the project, and 80% belongs to the investors. Enjin introduced a major upgrade to the blockchain and cryptocurrency wallet, which enables the sending of 100 fungible and non-fungible tokens in one transaction.

Payment

NPXS (Pundi X) is a consumer-facing product focused on making digital asset buys and sells as easy and simple as possible. The organisation is global and the last big news that was announced was their entering a partnership with Samsung. MCO (Crypto.com) has a circulating supply of 15.8 million, and trades on 22 major exchanges. The crowd sale launch date was in early 2017, with a capped supply of 31.5 million.

IoT (Internet of Things)

This sector is staying attractive as it is being called the “next big thing!” IOTA is the leader when it comes to transaction settlement and data transfer layer for the IoT sector.

Exchange

The OKB (OKEx) and HT (Huobi) exchange tokens were added to the Mid Index when the FTX rebalancing took place at the end of March. Both tokens have performed well compared to their competitor token, LEO, which is the exchange token of the Bitfinex exchange.