What if crypto exchange users were able to get their hands on meaningful market sentiment data free of charge? It appears that this is now possible and would give traders a competitive edge as crypto trading is completely dependent on news and the market sentiment.
Access To Data
Today, CoinMetro becomes the first crypto exchange to offer market sentiment data used by hedge funds. Kevin Murcko, founder and CEO at CoinMetro says; “Big funds have had access to data of traders that is not accessible to retail traders. Essentially using the retail traders’ data to trade against them. As bitcoin came with the promise of democratizing finance, this here is democratizing data. This data would usually not be available for the little guys. Barriers to entry are really high usually due to cost. We are giving this to all of our users for free. Because we feel they have a right to it.”
CoinMetro has integrated with The TIE – the premiere provider of alternative data for digital assets. The TIE is a cryptocurrency focused spin-off of Social Market Analytics (SMA), an official Twitter partner and the leading provider of sentiment data across traditional asset classes. In traditional markets SMA provides sentiment data to leading financial firms including Fidelity, CME, ETrade, Sequoia, and Barclays.
The TIE actively provides actionable market intelligence to many of the leading quantitative hedge funds and asset managers within the digital asset space. For the first time many of those actionable metrics are being made available to the public on the CoinMetro platform.
As of today, The TIE will provide raw actionable data to investors on CoinMetro, the licensed crypto exchange platform based out of the agile startup capital of Tallinn, Estonia. CoinMetro was founded by leaders from the forex industry to provide the best trading experience for the crypto market. This integration will provide signals for CoinMetro’s traders based on market sentiment, showing potential bullish or bearish sentiment. As the crypto markets are largely moved by the wisdom of the crowd and news, actionable data can provide traders with an advantage.
Smart Investing on CoinMetro
Unlike equities, cryptocurrencies don’t have earnings, revenues, or dividends. There are no universally accepted fundamental valuation mechanisms that investors can use to determine the fair market value of a particular cryptocurrency. Cryptocurrency movement is predominantly driven by the wisdom of the crowd and investor sentiment. In other words, fear, greed and hype drive crypto currency markets.
Leveraging access to the Twitter Firehose, The TIE parses through nearly one billion tweets per day, leveraging proprietary machine learning and natural language processing technology to quantify cryptocurrency investor sentiment and produce actionable insights. For the first time, individual investors will have access to data that The TIE had previously made exclusive to their institutional clients. On CoinMetro, investors will have access to The TIE’s Daily Sentiment Score and Relative Tweet Volume*.
“The crypto market is maturing and as a result crypto traders are becoming more aware of market sentiment. Hype driven markets are notoriously hard to read and this can be daunting even for more experienced traders. CoinMetro’s goal is to make crypto more user friendly and that means helping our clients manage their own portfolios more objectively. This partnership with the TIE gives us the ability to do that in a unique and powerful way,” says Murcko.
*The market sentiment data is available for all CoinMetro users free of charge. Daily Sentiment Score is a measure of how positive or negative conversations on Twitter have been about a particular coin over the last 24 hours vs. the previous 20 days. A score above 50 implies that conversations have been more positive today vs. the last 20 days. A score below 50 implies that conversations are becoming more negative. Relative Tweet Volume measures how many more or less Tweets a particular coin has over the last 24 hours vs. an average of the prior 30 days.