Ever wondered about the difference between an app-token and an asset, a protocol token and a payment token? Even if’s not something you’ve ever troubled yourself with, you probably should at some point – not least because the tax man and regulators are likely to do the same.
Fortunately, those helpful folks at Brave New Coin have done a lot of the legwork for you with their guide: A General Taxonomy for Cryptographic Assets. You can access this at https://bravenewcoin.com/general-taxonomy-for-cryptographic-assets (ProTip: Brave New Coin also post excellent market overviews and technical analysis. If you read one market analysis per week, it should be ours. If it’s two, take a look at BNC.)
BNC’s taxonomy splits crypto assets into four ultimate forms:
Payment Cryptographic Assets, which include many gen1 coins like bitcoin, Crown, Doge and tokens like XRP. - Platform Cryptographic Assets, which are used to pay fees for services on 2.0 platforms like Waves and NEM.
Application tokens, which power a specific use case (TIME, Lunyr, Civic, Tether).
Side Chains, like Steem-Dollars.
Not everyone will agree with the classification for all of these, and there are good grounds for reclassifying some of them.
Bear that in mind, because it might represent valuable wiggle room if the SEC or tax man comes calling.
Red hot news, scorching wit and searing opinion pieces from Crypto Inferno.
Join us on
Telegram: https://t.me/crypto_inferno
Reddit: https://www.reddit.com/r/CryptoInferno/
Twitter: https://twitter.com/CryptoInferno_
Facebook: https://www.facebook.com/CryptoInferno/