As crypto-users wait for a bull run followed by an alt-season, Jeff Dorman, Chief Investment Officer [CIO] of Arca, a full-service investment management firm, has suggested another way to look at the performance aspect of individual cryptos. Dorman’s company Arca owns Ethereum [ETH] and LEO but according to Dorman, Ethereum may be one of the worst tokens created.
The CIO meant this in terms of up/down capture that measures the performance of the token relative to the market’s upside and downside, merely termed as up/down capture. According to Dorman, LEO may be the “best token ever created” as it reported a 70% up-capture and only 52% down-capture of BTC, whereas “$ETH may currently be one of the worst” with 97% up-capture and 123% down-capture. Despite these statistics provided by Dorman, the sentiment for LEO was not very positive, largely due to the operations of its parent company.
Apart from Ethereum and LEO, the CIO made note of up/down capture of Waves which, over the past six months, captured 36% of BTC’s upside, while capturing 95% of its downside. Even Stellar Lumens [XLM] suffered, reporting 60% of BTC’s upside, but 120% of its downside. A similar trend was followed by XRP, a crypto which has not budged drastically like other cryptos this bull season. XRP noted a 72% upside of BTC, but 123% of its downside.
Among the average coins, the coins that shone were Link and Binance Coin. LINK noted an 110% up-capture of BTC over the past six months and only 58% of BTC downside. On the other hand, Binance climbed one step up the ladder on CMC on July 12, noting an up-capture of 85% and only 47% down-capture.
As for Litecoin [LTC], it captured 110% of BTC upside and 118% of BTC downside, meaning, “it’s a high beta play on BTC (more upside AND more downside).” Contrarily, Tezos [XTZ] has a lower beta play.
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