Classification of Cryptoassets
Classifying cryptoassets is an important part of understanding their differences and functionality. Currently, it is appropriate to distinguish 10 types of cryptoassets, eight of which are token-based. This classification reflects the current state of the crypto economy: most new cryptoassets are created in the form of tokens, making them key drivers of the industry.
Dividing cryptoassets into types allows us to:
- understand their functional purpose,
- analyze risks and opportunities for different types of assets,
- navigate investment and user scenarios.
Main Types of Cryptoassets
The table below presents the most relevant classification of cryptoassets with a brief description of their functional features and examples.
| Cryptoasset Type | Description | Examples |
|---|---|---|
| Cryptocurrency | Digital money based on blockchain, issued by private companies or individuals rather than central banks. Also used as a means of paying fees within the blockchain network. | Bitcoin, Ethereum |
| Stablecoins (Fiat-backed) | Tokens whose value is strictly pegged to a government currency (usually the US dollar) and backed by reserves. | USDT, USDC |
| Stablecoins (Algorithmic) | Tokens whose value is maintained algorithmically through smart contracts and asset reserves, rather than being directly tied to fiat currency. Can be more volatile in case of algorithmic failure or insufficient reserves. | UST (before collapse) |
| Commodity-backed tokens | Tokens whose value is tied to physical assets, such as precious metals, oil, or gas. Used to track supply history and ensure transparency. | Gold tokens, silver tokens |
| Liquidity Pool Tokens (LP tokens) | Represent a share in a decentralized exchange liquidity pool. Holders earn income from operations in the pool and can reclaim their funds by redeeming the token. | Uniswap LP Token, Sushiswap LP Token |
| Utility Tokens | Tokens that grant access or privileges within a product or service. Usually purchased for investment purposes. Not considered securities to comply with regulatory requirements. | Basic Attention Token (BAT), Golem (GLM) |
| Security Tokens | Tokens linked to real-world assets or company shares. Currently limited in use but potentially could replace traditional securities to simplify accounting and compliance. | tZERO Security Token, Polymath Token |
| Meme / Social Tokens | Tokens created around memes, cultural phenomena, celebrities, or communities. Mainly used for fan engagement, social support of projects, or entertainment purposes. | Dogecoin, Shiba Inu, Trump token |
| NFT (Non-Fungible Token) | Non-fungible tokens that represent ownership of unique digital or physical items. Often used for digital art, collectibles, and objects with unique attributes. | CryptoPunks, Bored Ape Yacht Club, NFT-linked diamonds |
| CBDC (Central Bank Digital Currencies) | Digital currencies issued by central banks and operating on blockchain. Used to legalize digital payments and control money supply. | Digital yuan, digital ruble |
Summary
This classification structures knowledge about cryptoassets and helps to understand their differences in terms of functionality, risks, and use cases.
Understanding cryptoasset types is important for users, investors, and professionals in finance and technology, as it facilitates evaluation, application, and accounting of digital assets in real-world scenarios.