Tanya Abrosimova
Independent Analyst
- The new tool will produce trading signals based on the trading activity of large holders.
- The exchange promises the data will be decoupled from individual traders.
Exchange scrutinizes trading activity of top cryptocurrency holders
The US-based cryptocurrency exchange Coinbase has launched a tool that allows scrutinizing trading activity of large cryptocurrency holders.
Being valued at over $8 billion, Coinbase is considered one of the largest trading platforms for digital assets in the world.
According to Max Branzburg, head of consumer product at Coinbase, the new tool will be available to all customers around the globe, both on the website and via mobile app.
“This will be really useful for those who are new to the world of crypto. It will help them get up to speed and get to know the market better,” he said.
The tool will analyze the transactions from large holders and generate trade signals, thus helping traders to make informed decisions.
“We think trading signals, backed by verified transactional data, are an important step towards raising the level of trust in the crypto-economy,” Branzburg added.
The signals will also show the median number of days a coin stays in a customer account, the relative popularity of different assets, and measure how different cryptocurrencies’ prices move in relation to one another.
The signals will be based on anonymized transactions data of top 10% holders for Bitcoin, Ethereum and other digital assets. Apart from that, they will reflect the median number of days an asset is held in a customer account, the relative popularity of various coins, and the correlation ratio of the selected cryptocurrencies.
“The data is aggregated and anonymized, so all you can see is a couple of very high-level metrics. It’s quite separate from the individuals concerned,” Branzburg, answering questions about privacy and confidentiality issues.
Recently, Coinbase launched debit cards in the UK. The plastic will allow consumers to pay for their everyday needs directly from their Coinbase account.
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