Bitwise’s “Real Ten” SEC cryptocurrency report continues to inspire integrity-centric products.
Data firm Nomics announced Tuesday its “Transparent Volume” service which calculates the percentage of real volume traded on cryptocurrency exchanges. By tracking the amount of cryptocurrency moving through an exchange, Nomics claims it can empower investors in real-time.
(Image via Nomics)
Backed by notable investors like Coinbase Ventures and CoinDesk owner Digital Currency Group, the data provider launched in 2018. Much like Bitwise’s report, Nomics’ transparency definition comes from the availability of granular historical trading data.
Speaking with CoinDesk, CEO and co-founder Clay Collins pointed toward the regulatory hurdles lack of data transparency is creating:
“We currently list 3,873 assets on Nomics (2,502 of which are actively traded). The cutoff to be in the top quartile of actively traded assets in terms of percent transparent volume is around 1 percent. That is, if you have over 1 percent transparent volume for your cryptoasset, you’re in the top quartile.”
Of the top 10 cryptocurrencies by market cap, only binance coin has a transparency rating over 30 percent, Collins said.
Providing an API service for institutional investors, Collins says Transparent Volume is for investors of all stripes. Pointing towards Bitwise’s example, which released its SEC study in March, Nomics says transparency is found in the data.
“Our transparent volume metric is intended to help institutions, state actors, and investors assess the percentage of reported trading volume for a given crypto asset that is auditable and transparent,” a release said.
Crypto data integrity continues to be an issue across the space. A report from CoinDesk in July showed the ease of one Moscow student faking trading volume for only a $15,000 fee.
Like Nomics, data provider Messari Crypto launched a similar product – its “Real 10” 24-hour volume metric – last spring.
Clarity image via Joel Filipe/Unsplash