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(7 Day Change as of Apr 11, 2023 2:00PM ET)
Bitcoin Price: $26,891  (8.96%)
DeFi Total-Value-Locked: $46.55B
Ethereum Price: $1,783  (10.31%)
Crypto Market Cap: $1.11T
Bitcoin Range: $26,800 - $29,850
BITC.U Close: $8.24 (as at May 10, 2023)
Ethereum Range: $1,772 - $2,020
BITC.U NAV: $8.26
Bitcoin Dominance: 48.07%  (0.68%)
BITC.U Discount: 0.24%
Let's Talk Tokens 

By Alex Tapscott

When it comes to tokens, myths and misinformation abound. Often, all tokens are classified as “cryptocurrencies.” This is unfortunate, as the term cryptocurrency is a misnomer. Most tokens are not trying to be currencies in the classical sense of a medium of exchange, store of value and unit of account.

Just as websites are containers for information, tokens can be thought of as containers for value. Increasingly many businesses are harnessing digital assets, also known as tokens, to open new markets, create new products and services and reach customers. And indeed, there is a near infinite number of different tokens representing ownership in everything from money to stocks, art, collectibles, data, natural assets, and much more. Let’s revisit the token taxonomy. Here are the ways tokens are being deployed today:

1. Cryptocurrencies like Bitcoin attempt to build Internet-native money that can act as a store of value, unit of account and peer to peer medium of exchange. Bitcoin is the dominant cryptocurrency with a market value of approximately $400 billion US dollars. Bitcoin also represents roughly 40 percent of the total market value of all tokens.

2. Protocol tokens like ETH, which powers the Ethereum blockchain, are foundational to the development of Web3 applications. Application developers need ETH to run applications on the network. So, the more applications that people build on Ethereum, the more value accrues to its native token because of the greater demand for ETH. A power utility makes more money when it has more customers.

3. Governance and utility tokens give holders an economic stake and a say in how a protocol, service, or product is operated. Adopters of the product or service can earn or buy these tokens in the open market. For example, holders of UNI have a vote on decisions affecting the Uniswap decentralized exchange, which runs on Ethereum.

4. Oracle tokens: Blockchains are immutable records of transactions in a network. The information recorded to blockchains is trustworthy, searchable, and auditable. This is one of their great benefits. However, they are self-contained systems, meaning they do not have ‘access’ to data that happens in the real world. Oracle systems create incentives to bring accurate ‘off-chain’ data onto blockchains.

5. Interoperability tokens: We need easy ways to connect different blockchains, kind of like bridges and tunnels for the internet of value. Interoperability protocols like Cosmos have tokens that help regulate the flow of value across chains. Perhaps the easiest way to think of them is as the tolls for canals and other arteries of blockchain commerce. The more trade there is, the more these platforms prosper.

6. Securities tokens are tokens that represent a claim on a security like a stock or bond. A securities token could be a share in a company, a bond, a derivative contract, a mutual fund unit and so on. While the potential is enormous, securities tokens remain a niche, largely because laws don’t widely recognize them yet.

7. Corporate coins are issued by centralized businesses, mostly cryptoasset exchanges. They are like loyalty points but turbocharged. They are used by some companies for special rebates, rewards, promotional offers and so forth on centralized exchanges. But they do not always come with economic and governance rights, like equity or, for that matter, governance tokens. One application for corporate coins is loyalty points that are self-custodial and fungible.

8. Natural asset tokens are backed by assets like carbon, water, or air. Natural asset tokens are a form of collateralized asset such as the carbon credit. The opportunity here is significant: Carbon offsets can help fight climate change. A decentralized global registry to buy, sell, and retire credits could expand the industry materially.

9. Stablecoins are digital assets pegged to another asset with stable value such as the US dollar. Stablecoins are the primary medium of exchange in Web3 and have grown twenty times in a few years to over $100 billion in supply.

10. Non-fungible tokens (NFTs) NFTs are unique digital goods that are provably unique, provably distinct, and therefore not fungible and not interchangeable. While commonly associated with art and other rare collectibles, NFTs are also useful for expressing bespoke contracts and agreements.

11. Central bank digital currencies (CBDCs) are digital assets issued by governments and central banks. Advocates argue that it could accommodate unbanked people, reduce costs, and expose financial risks earlier. But detractors warn it could be used as a surveillance tool and thus a way to control citizens


Taxonomies help us organize and classify information about the world around us. They are incredibly useful, especially when industries are nascent, and confusion abounds. The one omission from this list would be the so-called “meme coins” which periodically surge from the primordial stew of internet subculture to reach dizzying values. Dogecoin is the most well known, but Pepe, an Ethereum ERC 20 token, just hit over $2 billion in value. There will be others. In time, I also fully expect this taxonomy to become less useful. For the same reason a “taxonomy of websites” today would be silly (after all, websites can be programmed to do more than could fit in a single taxonomy), token taxonomies will feel woefully incomplete or oversimplified.


Sam Altman’s World App is Here: The Simple Digital Wallet with a Powerful Purpose

Sam Altman's crypto project, Worldcoin, has released its first major consumer product, World App, a minimalist digital wallet designed to prove human identity in the age of artificial intelligence (AI). As advances in AI make it more difficult to distinguish between humans and bots, Altman believes blockchain can assist. World App is built on Polygon and is the first product from the identity upstart that anyone, anywhere, can download. World App aims to redefine itself in the eyes of consumers by functioning as a stripped-down crypto wallet and a passport for the AI era. The application launched in more than 80 countries following a successful beta testing phase that saw an influx of over 1.5 million users, carrying out nearly 60,000 daily transactions on average.

Former Facebook Crypto Developers Launch Sui Which Aims to be a High-Throughput Network for the Masses

The highly anticipated Sui blockchain network, developed by former Facebook crypto project developers, has finally launched on mainnet following a $300 million Series B funding raise in September 2022. The blockchain has shown high throughputs of 10,871 transactions per second (TPS) to 297,000 TPS on various workloads in tests, making it far more efficient than other networks, such as Solana, which has roughly 4,000 TPS. Sui is a layer-1 (L1) blockchain and smart contract platform designed to make digital asset ownership fast, private, secure, and accessible to everyone. It is a step-function advancement in blockchain technology and offers a first-class developer experience. The network will support various applications, including gaming, finance, commerce, and social media.

Box Office by SI Tickets: Sports Illustrated’s Blockchain-Powered Ticketing Solution

Sports Illustrated's fan-first ticketing site, SI Tickets, has partnered with ConsenSys and Polygon to launch "Box Office by SI Tickets," a self-service event management and primary ticketing blockchain-powered solution. Box Office will enable organizers to create, manage, and promote ticketed events of all sizes with the added benefit of visibility and adjacency compared to conventional, non-NFT tickets. The platform features Super Ticket, an NFT ticket solution that offers attendees exclusive offers, loyalty benefits, collectibles, and other engagement opportunities before, during, and after the event. Box Office will debut with everything from youth football to live music bars.

Is America Closing its Doors to Web3? With Sheila Warren of the Crypto Council for Innovation

Join Alex Tapscott as he decodes the world of DeFi with special guest Sheila Warren, CEO of the Crypto Council for Innovation. Listen in as they discuss Sheila’s Web3 origin story, experience spearheading blockchain at the World Economic Forum, day-to-day work at the Crypto Council for Innovation and its source of funding, root causes of the banking crisis, the big geopolitical picture in the race to establish clear legislation governing crypto, and more! 

The Crypto Council for Innovation is the premier global alliance advancing crypto innovation through research, education, advocacy, and partnerships to unlock the promise of Web3. With a powerful alliance including dominant stakeholders such as Andreessen Horowitz, Coinbase, Block, and more, the Crypto Council for Innovation partners with governments and key enterprises to help achieve its global vision of inclusive regulation through actionable and evidence-based insights. Before Sheila’s at the Crypto Council for Innovation, she founded the Blockchain and Digital Asset team at the World Economic Forum and served on the Executive Leadership Team for the Centre for the Fourth Industrial Revolution. As a Harvard-trained lawyer, Sheila’s career started at Cravath, Swaine, and Moore LLP as an attorney, and she spent a great deal of time working for the non-profit sector to help companies embrace emerging technology as both a lawyer and executive. Sheila is also the Co-Host of Coindesk’s TV show and podcast, Money Reimagined.

Tune in to the 95th DeFi Decoded episode to hear Alex and Sheila discuss all things DeFi and Crypto Council. How did Sheila’s Web3 journey commence, and what was her experience leading blockchain at the World Economic Forum? What is the Crypto Council for Innovation, how are they funded, and which regions do they operate within? What is the big geopolitical picture on crypto regulations, and is the United States falling behind?

Source: The Block
Chart #1: Stablecoin Market Update: USDT Grows $12B, All Others Experience Decreases YTD
Stablecoins, which aim to maintain a stable market value based on an external reference, such as the US dollar, and have experienced a nearly 8% decrease in total supply YTD, according to the latest data. The total stablecoin supply, worth $128 billion, has seen significant changes in individual stablecoins' shares. BUSD, for example, saw a 63% decrease in just over four months, from $16 billion in January to $6 billion in May. This drop was caused by several factors, including regulatory action by the NYDFS and Coinbase's delisting of the stablecoin due to not meeting their standards. Interestingly, all but one stablecoin have decreased in supply since the start of the year: USDT, which in just four months, has increased by nearly $12 billion.
Source: glassnode
Chart #2: The Cost of Congestion: Bitcoin Fees Skyrocket Amid Surge in Network Activity
Bitcoin's network is currently experiencing congestion due to over 423,000 unconfirmed transactions in its mempool, causing transaction processing times to slow and fees to surge. As a result, the percentage of miner revenue from fees has spiked to almost 43%, a level not seen since December 2017. The mempool serves as the waiting area for incoming transactions before each node on the network independently verifies them. This congestion is believed to be caused by a surge in BRC-20 transactions, including the recent frenzy surrounding Pepe (PEPE) memecoin. Periods like these highlight the immense importance of the Lightning Network, a layer-2 solution on Bitcoin, to support its scalability and efficiency.
Source: CoinMarketCap
Chart #3: Memecoin Mania: New PEPE Coin Hits $1.6 Billion Market Cap, Tumbles to $740 Million
PEPE, a new meme-inspired cryptocurrency based on Pepe the Frog, aimed to be the "most memeable memecoin in existence," is the new meme coin in town; it surpassed $1 billion in market cap within weeks of its April 17 launch, becoming a top 50 cryptocurrency. It briefly overtook established projects like Arbitrum and Vechain, hitting an all-time high of $1.6 billion. However, frenzied rallies from retail traders like these can be a concern of an overheated market, with mass selloffs often imminent, as seen with PEPE's market cap now standing at $740 million.