Overview
In 2017 during the initial Coin Offering (ICO) boom, the number of digital assets went from dozens to thousands seemingly overnight. The rapid proliferation of digital assets meant that new ones were being launched daily. This made it difficult for institutional investors to gain access to a broad view of the industry.
At that point, Digital Asset Research (DAR) built an initial taxonomy system to help institutional investors assess this new fragmented asset class. DAR’s goal was to help institutional investors filter data by developing a system much like the ones used in traditional finance but uniquely crafted for the complexities of crypto and with the quality that institutional clients require.
The Digital Asset Taxonomy System (DATS) tracks more than 10,000 digital assets and classifies over 1,300 into a transparent hierarchical structure. The framework allows institutional investors to see sector trends, determine how those trends impact a portfolio, and understand how sector(s) contribute to performance. From there, institutional investors can identify opportunities and risks to build a portfolio in line with their strategies.