First-of-its-kind benchmark tracks growth of tokens based on the ERC-20 protocol
San Francisco, CA, Oct. 25, 2018 (GLOBE NEWSWIRE) — SharesPost, the leading provider of liquidity solutions to the private growth asset class, has announced the launch of the SharesPost Token Index, a tool designed to better track the growth of the token market. The Index focuses on a select group of tokens based on the ERC-20 protocol, and uses factors such as market capitalization and trading history to assign a weight to each token based on price and circulating supply. As such, the Index is able to accurately reflect the market’s overall maturity in real-time on a daily basis while minimizing liquidity risk and transaction costs.
SharesPost Founder and CEO Gregory Brogger said: “As interest in cryptocurrencies and blockchain continues to rise, we saw a need to provide a meaningful measure of token performance to help inform investor decisions and make the market more comprehensible for everyday people. Our resulting growth Index addresses this need, while reflecting our larger mission of providing liquidity to the private growth asset class through trading, asset management, research, and data.”
The Index uses a market capitalization formula to calculate a total value based on daily pricing data. Specifically, the Index draws upon the volume-weighted average price of each token from a white list of exchanges. The tokens chosen for the Index were selected because they are representative of the broad blockchain sector, come from credible projects, and have defined utility. As a result, the Index excludes tokens that are pegged to a particular asset or currency.
Using July 1, 2018 as the baseline, SharesPost reviewed the Index’s performance back to Q3 2017 and compared the data to Bitcoin and Ethereum prices. Although the token market has suffered short term volatility, the assets present an opportunity for longer term investors. Cumulatively, the Index has grown 17 percent since October 2017, with Ethereum dropping 17 percent and Bitcoin increasing by 59 percent over that time frame.
“As more institutions continue to dive into the crypto world, a consistent and comprehensive tool for analyzing tokens is integral to effectively evaluate and interpret the market. Our mission is for the SharesPost Token Index to be that tool, providing much-needed clarity to a nascent and ever-evolving industry, ” said Rohit Kulkarni, Head of Research for SharesPost, Inc.
About SharesPost, Inc.
SharesPost’s mission is to create liquidity for the private growth asset class. In 2009, SharesPost launched the first online secondary market for private technology company shares. Since then, SharesPost has connected thousands of buyers and sellers in more than $4 billion worth of transactions in the shares of more than 220 leading technology companies.
The SharesPost platform now also enables clients to access a variety of private market investment and liquidity solutions including (i) research and data on leading private technology companies, (ii) the SharesPost Private Growth Index, (iii) the SharesPost100 Fund, a registered closed-end interval fund providing all investors with easy access to the asset class, and (iv) SharesPost Lending, which enables private company shareholders to borrow against their shares. In 2017, SharesPost managed its first Initial Coin Offering and in 2018 announced plans to integrate trading of digital securities into the SharesPost platform.
SharesPost is a FINRA-registered broker-dealer, SEC registered Alternative Trading System and Registered Investment Advisor. For more information, please visit SharesPost.com.
About the SharesPost Token Index:
The SharesPost Token Index acts as a proxy for the performance of Ethereum ERC20-standard tokens, which represent a broad array of blockchain solutions for various industries. The Index uses a market capitalization formula to calculate a total value based on real-time pricing data from a white list of exchanges. The Index is calculated on a daily basis based on proprietary technology to create basket tokens using market capitalization and trading volumes, and will be rebalanced and reconstituted every quarter. Daily token pricing will also be available on SharesPost.com for accredited investors.
For more information on the SharesPost Token Index, visit: sharespost.com/tokenindex
Tom Hannaford Wachsman 917-900-5752 Tom@wachsman.com