The market has been optimistic about the long-term prospect of the blockchain-based IoT projects, due to the rapid development of IoT and the favorable transparency as well as the decentralization of blockchain. Ethereum Classic (ETC) has also joined the IoT category since 2017. Moreover, IoT is considered as one of ETC’s largest application scenario and main short-term goals. ETCDEV, as ETC’s development team, has already started the development of IoT-based EVM (Ethereum Virtual Machine).
The IoT category is highly dominated by the four largest IoT cryptocurrencies, which are IOTA, Ethereum Classic, Ontology and Waltonchain and have taken up 93.95% market shares. Additionally, Ontology, with the 3rd largest market capitalization and the 8th listing ROI, have achieved one of the highest daily returns again.
1. Internet of Things
1.1. Definition of IoT
Internet of things refers to the network of physical objects which contain embedded sensors and actuators to monitor internal state as well as sense, connect and interact with the external environment. Devices on IoT can communicate through wired and wireless networks without human intervention. In fact, the idea of adding sensor and intelligence to basic objects dated back to the 1980s but progress was slow due to the lack of technology breakthroughs.
IoT can revolutionize different aspects of life. For instance, the sensors embedded in the IoT devices monitor lighting, temperature, energy usage, etc. in a factory and the data is processed by intelligent algorithms to instantly manage the activities. In this way, Google has reduced 15% of energy expenditure in its data center.
1.2. Scale of IoT
There were approximately 8.4 billion IoT devices being used in 2017, 31% greater than 2016 and this number is predicted to reach 20.4 billion by 2020. Two out of three of them are found in China, North America and Western Europe. Besides, half of the total devices are consumer products like smart TVs and the most-used enterprise IoT devices are smart electric meters and commercial security cameras.
1.3. Combination of IoT And Blockchain
Since the decentralization is the core of blockchain, the blockchain-based IoT would be more transparent and secure. For instance, when any personal information is leaked, it is possible to trace the information and how it is leaked. Additionally, the blockchain has strong protections against data tampering and therefore would prevent a rogue device from disrupting a home, factory and transportation system.
2. 1COs of Internet of Things Category
2.1. 1CO Date
Figure 1. The 1CO Dates of Tokens. Source: TokenInsight
By April 4, 2018, 17 kinds of IoT tokens have been issued globally, 12 of which are available for inquiry. Since Ethereum was re-branded and preserved as Ethereum Classic after the hard fork on July 20, 2016, Ethereum Classic is the earliest adopter of 1CO of IoT tokens that can be publicly inquired, which occurred on July 22, 2014.
3. Market Shares
3.1. Market Capitalizations
Figure 2. The Market Shares of Tokens. Source: TokenInsight
The percentage of the market capitalizations over the total market capitalization describes the market shares of each token. Specifically, the top 1 token, IOTA, occupies 52.56 percent. Ethereum Classic and Ontology rank 2nd and 3rd with their market shares of 26.15 percent and 10.61 percent respectively.
3.2. Market Concentration
Figure 3. The Market Capitalizations and Market Shares of Tokens. Source: TokenInsight
The market concentration can be measured by the concentration ratio. Moreover, the four-cryptocurrency concentration ratio (CR4) refers to the total market shares of the top 4 cryptocurrencies with the highest market capitalizations in an industry. Specifically, under the IoT category, CR4 of IOTA, Ethereum Classic, Ontology and Waltonchain, is 93.95 percent. Therefore, IoT category is indicated to be highly concentrated and dominated by several tokens.
3.3. The Price Position of Top 10 Tokens by Market Capitaliztions
The figure below illustrates the price ranges of the top 10 tokens by market capitalizations. The top and bottom of each bar stand for the highest and the lowest historical prices while the boundary lines between two colors inside each bar display the average of the highest and lowest prices. Additionally, the black short lines inside the bars illustrate the current prices of the tokens.
As is shown in the figure, the highest historical price of Ethereum Classic which reached 45.51 USD, is the greatest among the top 10 tokens by market capitalizations. In contrast, the highest historical price of Nucleus Vision was 0.04 USD.
Besides, 8 out of 10 tokens are currently less than 10 USD while 6 tokens are lower than 1 USD. And 8 out of 10 tokens except Ontology and Credits are currently below the average of the highest and lowest historical prices.
Figure 4. The Highest, Lowest Historical Prices and Current Prices (April 4, 2018) of Top 10 Tokens by Market Capitalizations (Logarithmic). Source: TokenInsight
4. Listing ROI
4.1. Returns Overview (Listing ROI = Current Price / Listing Price — 1)
The blue area in the figure displays the listing prices while the blue line represents the current prices (April 4, 2018). And the listing ROI are shown as gray bars.
The return of BAI is the lowest among the tokens with positive returns. Thus, the tokens with positive returns are on the left of BAI and vice versa.
Figure 5. The Current Prices (April 4, 2018), Listing Prices and Listing ROI of All Tokens under IoT Category (Logarithmic). Source: TokenInsight
4.2. Distribution of Returns
7 out of 17 tokens (41 percent) in the IoT category have experienced positive price growth since listed, 57 percent of which have grown by over 100 percent.
Figure 6. The Distribution of Tokens with Positive and Negative Returns. Source: TokenInsight
4.3. Tokens with Positive Returns
The tokens shown below in the picture have achieved positive listing ROI. The sizes of their names describe the rates of returns.
Figure 7. The Names of Tokens with Positive Listing ROI. Source: TokenInsight
Ethereum Classic has skyrocketed since listed and achieved the highest return of 1840% among all tokens as the blue bars display.
Figure 8. The Returns of IoT Tokens with Positive Listing ROI (Logarithmic). Source: TokenInsight
4.4. The Price Postisions and Returns of Top 10 Tokens by Returns
The figure below illustrates the price ranges of the top 10 tokens by market capitalizations. The top and bottom of each bar stand for the historical highest and the lowest prices while the boundary lines between two colors inside each bar display the average of the highest and lowest prices. Additionally, the black short lines inside the bars are the current prices of the tokens.
6 of the top 10 tokens are currently less than 1 USD. Additionally, the high-return tokens have relatively higher price positions.
Figure 9. The Highest, Lowest Historical Prices, Current Prices (April 4, 2018) and Returns of Top 10 Tokens by Listing ROI (Logarithmic). Source: TokenInsight
4.4. Tokens within Top 10 by Both Returns and Market Shares
The figure below shows the tokens which rank within top 10 whether by listing ROI or by market capitalizations. Taking both the returns and market shares into account, Ethereum Classic performs the best with the 1st highest return and the 2nd greatest market capitalization.
Figure 10. Tokens within Top 10 by Both Returns and Market Shares. Source: TokenInsight