Bitwise’s “Real Ten” SEC cryptocurrency report proceeds to rouse integrity-centric products.
Data company Nomics revealed Tuesday its “Transparent Volume” service which calculates the rate of genuine volume traded on cryptocurrency exchanges. By monitoring the sum of cryptocurrency moving through an exchange, Nomics asserts it can empower investors in real-time.
Supported by outstanding investors like Coinbase Ventures and Digital Currency Group, the data provider was established last year. Nomics’ transparency definition comes from the accessibility of granular historical trading data, much like Bitwise’s report.
CEO and co-founder Clay Collins mentioned the regulatory obstacles lack of data transparency is making:
“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.”
Out of the top 10 cryptocurrencies by market cap, only binance coin features a transparency rating more than 30 percent, Collins stated.
Offering an API service for institutional investors, Collins says Transparent Volume is for investors of all stripes. Citing Bitwise’s example, which released its SEC study in March, Nomics says transparency is found in the data.
According to a release, “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.”
Crypto data integrity remains to be an issue across the industry. A previous report in July presented the ease of one Moscow student faking trading volume for only a $15,000 cost.
Like Nomics, data provider Messari Crypto introduced a comparative product – its “Real 10” 24-hour volume metric – last spring.