Research company Nomics launches indices to track cryptocurrency trading volume transparency
|- The new service will track trading volumes of digital coins.
- The new index is supposed to add transparency and credibility to the market.
The research data provider Nomics has launched “Transparent Volume” service that will allow injecting reliability to the trading volumes data published by cryptocurrency exchanges.
Being a Coinmarketcap's competitor, the company supplies the information on trading volumes transparency for over 3,800 coins across 167 trading platforms. To calculate an index, the company sums up a trading volume of an asset registered at several exchanges and divide it by the total registered volume.
According to Nomics CEO Clay Collins, exchanges like Coinbase Pro, Kraken and Binance can get an A or A + rating if they provide a complete trading history and raw data. Exchanges with a low rating (D) provide access only to tickers data, including daily volumes and prices. This data is predominantly tracked by CoinMarketCap, according to Nomics CEO.
At the time of the publication, Bitcoin's reliability index was 16%, Ethereum - 7%. Binance Coin was the only digital asset out of top-10 with an index of more than 30%.
As Collins explains, BTC and ETH are traded on exchanges with both high and low ratings, while less popular coins, like BNB, can have a higher rate, since they are available at very a limited number of trading platforms.
“For assets like BNB, it is traded primarily on Binance and Binance related exchanges. [This] causes a high amount of transparent volumes because it is primarily traded on exchanges that are very transparent,” Collins explained
The head of Nomics also noted that his team was inspired by Bitwise Asset Management report published in March for the US Securities and Exchange Commission (SEC). The report stated that 95% of trading volumes on unregulated exchanges are fake and economically absurd.
“We are the very first aggregator to rate exchanges according to their data transparency practices,” said Collins. “We ended up getting a lot of new customers as a result of this and having some exchanges come to us and say we would like to be more transparent as well, what do you need from us in order for us to be qualified for an A rating,” Collins added.
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