CoinGecko and 21Shares have proposed a Global Crypto Classification Standard \u2013 a classification system representing a uniform method for categorizing crypto assets. The standard is expected to help regulators and investors better understand various types of crypto assets and their unique features.<\/p>\n
Crypto data aggregator CoinGecko and crypto trading firm 21Shares have teamed up to introduce a worldwide standard for categorizing crypto assets. The two companies have published the Global Crypto Classification Standard report, which proposes a uniform method for classifying crypto assets.<\/p>\n
This classification system seeks to improve understanding among investors and regulators regarding the different types of crypto assets, including any potential shortcomings and issues that have emerged in the industry in 2022. At the same time, this method also outlines the taxonomy of the industry and attempts to attract more participants from traditional finance (TradFi).<\/p>\n
\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<\/p>\n
\u2013 Carlos Gonzalez, a research analyst at 21Shares owner 21.co<\/cite><\/p>\n At the moment, CoinGecko lists more than 12,000 different crypto assets, each with its unique features and characteristics. The classification system proposed by the two companies is based on three levels of categorization that differentiate these assets concerning stack, market sectors, industries, and taxonomy.<\/p>\n The Global Crypto Classification Standard categorizes crypto assets into three levels. The first level focuses on networks and protocols, including cryptocurrencies, smart contract platforms, and decentralized applications (dApps), among others.<\/p>\n The second level groups the assets based on their industries and sectors, such as centralized finance (CeFi), decentralized finance (DeFi), metaverse, etc. Finally, the third level focuses on the nature of the assets, whether a cryptocurrency, a native token of a specific network, a stablecoin, a derivative token, a governance token, or a utility token, among others.<\/p>\n Essentially, the primary goal of this classification standard is to provide companies and investors with essential insights into a particular network or protocol. Meanwhile, it also strives to help them see any potential issues associated with that project. Last year, several high-profile crypto projects, such as crypto exchange FTX, Celsius Network, and Voyager Digital, collapsed in days, pushing numerous investors away from CeFi platforms.<\/p>\n This article originally appeared on The Tokenist<\/i><\/p>\n Sponsored: Tips for Investing<\/b><\/p>\n A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.<\/p>\n Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses,\tconsider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.<\/p>\nThree Key Categorization Levels<\/h3>\n