We performed a mapping of the crypto-assets ecosystem and tracked the market capitalization evolution year over year to run a both quantitative and qualitative analysis of the crypto environment..

1. Crypto-Assets Market Watch
(2013-2017)
Tokenization of the Economy:
From Internet of Value to Internet of Society

2. Introduction

3. Historical Perspective
• In 2013, Bitcoin represented 92% of the crypto global market capitalization and the
value transfer layer (payment & remittance) represented 100 %. Blockchain allowed
the creation of crypto-assets which can not be double-spent nor duplicated: the first
use case for such assets has been to transfer value between individuals without the
need of a government-backed fiat currency: the Internet of Value was born
• At the end of 2017, Bitcoin represented 44% of the crypto global market capitalization
and value transfer represented 70%. In 2013, with Ethereum, a new use case for
blockchain has been found: running smart-contracts on a decentralized environment.
Ethereum and other blockchains (e.g. Neo) allow developers to build decentralized
applications on top of the blockchain and using the blockchain’s smart-contracts
• Between 2013 and 2017 we saw a major shift in the crypto-ecosystem: crypto-assets
are now used for several purpose: to transfer value, to run smart-contract and other
infrastructure services, to access to services offered by a decentralized application. We
see the raise of an Internet of Society where everything is connected thanks to
blockchains and valued thanks to crypto-assets
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4. Methodology
• The purpose of this paper is to understand the evolution of the crypto-ecosystem. To
do so, we worked on our own crypto-assets mapping: we selected 100 major crypto-
assets and divided them into 3 categories themselves divided into sectors:
• We tracked the market capitalization of each of the 100 crypto-assets we follow and
reported it in our data if it was superior to $1 Million. By studying the market
capitalizations of the assets, the sectors and the categories we follow, we have been
able to run a both qualitative and quantitative analysis
Category Value Transfer Infrastructure Decentralized Application
Sectors Remittance
Payment
Asset Creation
Computing Tool
IoT
AI
Asset Management
Audit
Data Storage
Decentralized Exchange
Energy Trading
Gambling
Gaming
Healthcare
Lending
Retail Banking
Payment Card
Rewarding
Social Network
Security
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5. Coverage
• Here are the 100 crypto-assets we follow and the aggregated market
capitalization of each sector at the end of 2017
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Source: CoinMarketCap, Token Capital Market

6. Market diversification
Crypto-Space Evolution (2013-2014)
• In 2013, we recorded 4 assets with a market capitalization superior to $1 Million for a global market
capitalization of $10 Billion
• At the end of 2017, we recorded 100 assets with a market capitalization superior to $1 Million for a
global market capitalization of $500 Billion
• The global market capitalization has been multiplied by 30 between the end of 2016 and the end of
2017 (while Bitcoin price has been multiplied by 15)
• At the end of 2017, 51% of the assets we follow were decentralized application (Dapp) crypto-assets
Number of crypto-assets by category (2013-2017)
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Source: CoinMarketCap, Token Capital Market
Source: Token Capital Market

7. Global Market Overview

8. Crypto-ecosystem by Category
Global Market Capitalization by Category (Million) Global Market Capitalization by Category (%)
• The Infrastructure layer of crypto-assets multiplied its market share by 5 between
2015 and 2016 and between 2016 and 2017 as well
• The Dapp layer of crypto-assets multiplied its market share by 4 between 2016 and
2017
• At the end of 2017,Dapp crypto-assets represented 51% of our coverage scope in term
of number of asset and 4% of our coverage scope in term of aggregate market
capitalization 8
Source: CoinMarketCap, Token Capital Market

9. Crypto-ecosystem by Sector
Global Market Capitalization by Sector (Million) Global Market Capitalization by Sector (%)
• Computing Tool sector is the main component of the Infrastructure layer, it
makes sense since most blockchain infrastructures are here to help
developers to build decentralized applications and create new use cases for
blockchain and crypto-assets
• Remittance stay bigger than Payment in term of market capitalization, the
Payments sectors for crypto-assets is very tied to the acceptance of crypto-
assets in shops as a medium of payment 9
Source: CoinMarketCap, Token Capital Market

10. Crypto-ecosystem by Asset
• Bitcoin’s market share stayed pretty stable around 90% of the global
market capitalization between 2013 and 2016 before being divided by 2
in 2017
• Ether has multiplied its market share by 3 between 2016 and 2017
from 4% to 12% of the global market capitalization
Global Market Capitalization by Asset (Million) Global Market Capitalization by Asset (%)
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Source: CoinMarketCap, Token Capital Market

11. 2013: Internet of value
Global Market Capitalization by Asset (%)
• In 2013, the crypto-space only was a value transfer layer, Bitcoin was 92%
of the global market capitalization and the other assets (Ripple, DogeCoin,
Litecoin) did not bring disruptive technology compared to Bitcoin protocol
• Using crypto-assets for value transfer purpose allows to exchange value
worldwide without state-backed fiat currencies
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Source: CoinMarketCap, Token Capital Market

12. 2014: Infrastructure layer
Global Market Capitalization by Asset (%)
• In 2014, after the Ethereum ICO, the computing tool layer started.
Ethereum, the biggest infrastructure blockchain, allows developers to use
the Ethereum protocol to build application run by a decentralized network
• 2014 also saw the first Dapps which were focused on Data Storage using
distributed ledger technology 12

13. 2015: Transition year
Global Market Capitalization by Asset (%)
• We see 2015 as a transition year for the crypto-space: the Ethereum
blockchain was not ready yet to issue tokens
• Dapps still focused on the ledger feature of blockchain with an
application in the Audit field
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14. 2016: Dapp implementation
Global Market Capitalization by Asset (%)
• 2016 saw the development of Dapps with Initial Coin Offerings allowing
crypto-entrepreneurs to raise money from the community
• Bitcoin still represented 90% of the global market capitalization while
Ether reached for the first time 4% of the global market capitalization
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15. 2017: Internet of Society
Global Market Capitalization by Asset (%)
• Initial Coin Offering has made Token and Dapp mainstream: almost
each economic sector now has its Dapp offering a decentralized service
or platform
• 2017 is the year of diversification for the crypto-space with Bitcoin’s
market share in term of market capitalization being divided by 2 15
Source: CoinMarketCap, Token Capital Market

16. Decentralized Applications

17. Dapp crypto-assets overview
Dapp Market Capitalization by sector (Million) Global Market Capitalization by Asset (%)
• Dapp crypto-assets represented $20 Billion at the end of 2017 versus $200 Million at
the end of 2016
• Data Storage was the first sector for Dapps, representing 100% of the Dapp layer
aggregate market capitalization at the end of 2014, constantly lost market share year
over year to represent only 12% of the Dapp market capitalization at the end of 2017
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Source: CoinMarketCap, Token Capital Market

18. New start-up ecosystem
Global Market Capitalization by Asset (%)
• We aggregated Payment Card, Retail Banking, Lending, Decentralized Exchange, and
Asset Management into Financial Services: it represented 47% of the Dapp market
capitalization while it represented 0% at the end of 2015
• Financial Services and Social Network together represented 70% of the Dapp market
cap at the end of 2017
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Source: CoinMarketCap, Token Capital Market

19. Venture Capital Democratization
Start-up Definition, Damoradan (2009) :
« No history…, small or no revenues, operating losses … dependent on private equity … many don’t
survive ».
Dilution Repayment Interest Dividend
Equity Yes No No Yes
Debt No Yes Yes No
Mezzanine Yes Yes Yes Yes
Token No No No No
A new financial paradign
• Ethereum’s ERC20 Token put a stop on the Private Equity & Venture Capital monopoly for
start-up financing
• Token Sales or ICOs should be viewed as a disruptive fundraising mechanism taking
advantage of the Blockchain Technology to fund start-ups
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20. Conclusion

21. Market Forecast
• We see the Dapp category as the most promising one, we forecast a big
growth in 2018 for this category in term of aggregate market
capitalization and number of assets as well
• We expect to see more Initial Coin Offering to fund start-up projects in
all economics sectors. We see a big potential for Dapp ICO in
InsureTech, FoodTech, Virtual & Augmented Reality, Peer-to-Peer
services and already established sectors such as FinTech, Social
Network and online gaming
• We also expect to see more institutional investors entering the crypto-
space and more professionalism in the investment processes
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22. Investment Strategies
• Initial Coin Offering still the best way to be exposed to early-stage Dapp
crypto-assets
• Due to the large number of ICO outstanding each month, portfolio
diversification, sector exposure management and strong due diligence
are the keys to run a successful ICO investment strategy
• We recommend a 2-steps investment method: first select the most
promising sectors, then, invest in the most promising projects in the
most promising sectors
• In term of valuation, the 𝑀 ∗ 𝑉 = 𝑃 ∗ 𝑄 equation from the Quantity
Theory of Money works for most of the crypto-assets, the hard thing
being to model the equation for each specific use case
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