According to a number of online reports, Nasdaq is weighing up the launch of the crypto price predicting tool. The Nasdaq crypto analysis tools will analyze data from fund flows via wallets, data from exchanges and social media.
11 September, AtoZ Markets – It appears that Nasdaq might be considering the release of the tools for predicting the predicting of cryptocurrencies. This would provide institutional investors with an analytical application for trading numerous cryptocurrency assets.
Nasdaq to Offer Crypto Price Predicting Tool
As per the number of online reports citing a person that is familiar with the company’s plans, the US stock exchange has prepared to add tools for forecasting the price movements of cryptocurrency assets to its Analytical Hub. Nasdaq’s hub has been launched year, as it is based on machine learning and natural language processing (NLP) capabilities. It aims to browse through social media and some other data sources to provide investors with a better way to evaluate market movement.
As of the moment, the Analytics Hub is focused on traditional assets. However, the addition of cryptocurrency assets seems to appear as yet another signal from Wall Street’s giants indicating their growing interest in this rapidly developing sector.
The Nasdaq’s head of alternative data, Bill Dague, has stated that "given the abundance of interest, we are exploring cryptocurrency related datasets." He went on to explain this by saying:
"Whether or not we launch a crypto-related product remains to be seen."
However, the source that has been cited by online media reports, is allegedly working with Nasdaq on the effort. This person has been reportedly clear about that the new cryptocurrency functionality is being beta tested at the moment. Soon, the source said, the company will move to launch the project as soon as this November.
In addition, the source has reportedly stated that the service would provide sentiment on 500 cryptocurrency assets. It is also reported that the project would take a three-pronged approach to its analysis. The Nasdaq crypto analysis tools will analyze data from fund flows via wallets, data from exchanges and social media. The source has been quoted as saying:
"There's the social media sentiment part, so applying machine learning and NLP, which will start with Twitter and might include StockTwits and then eventually perhaps Reddit.”
Nasdaq Crypto projects
The news emerged following the statement from the Nasdaq CEO Adena Friedman about the company’s intentions to consider offering some kind of Bitcoin futures products. Then, in April 2018, she has added that Nasdaq would even look into the idea of creating a cryptocurrency exchange.
She has stated that “certainly Nasdaq would consider becoming a crypto exchange over time.” Reportedly, she believes that cryptocurrencies “will continue to persist,” with the only concern being the amount of time the digital currency market might take to mature.
However, once the cryptocurrency sector becomes more settled and regulated, Nasdaq will be able to say, according to Friedman:
“It's time, people are ready for a more regulated market, for something that provides a fair experience for investors."
In fact, Nasdaq has already set its foot in the cryptocurrency market. The US stock exchange along with the Gemini cryptocurrency exchange that is managed by the Winklevoss brothers have announced a partnership. It is known that Gemini will be utilizing the Nasdaq’s SMARTS Market Surveillance technology in order to warn the exchange about the possible suspicious trade behavior. This could prevent market manipulation.
Think we missed something? Let us know in the comments section below.