A British crypto firm named CryptoCompare is promoting a new “Exchange Benchmark” product that will scour exchange activity on 100 platforms worldwide and purport to show ‘real’ volume.
In a press release, CryptoCompare leaders talked about how exchanges can misrepresent volume with spoofing, washed trading and more – and outlined a plan to deal with this reality by scrutinizing real volume in-house.
This makes a lot of sense to investors, who are used to looking at volume in various markets to try to determine future activity.
If, as CryptoCompare experts indicate, a lot of volume reporting is fake volume, then providing a cop on the beat offers crypto investors a much-needed service.
CryptoCompare promotes what it calls a “qualitative due diligence” approach and a quantitative approach involving “market quality based on order book and trade data.”
Using more sophisticated analytics, CryptoCompare leaders say, the exchange benchmark will outperform other methods that just aggregate volume data according to what’s reported.
Here are some of the exchanges that CryptoCompare has given its seal of satisfaction as trustworthy places to go after coin deals:
- Coinbase
- Bitstamp
- Kraken
- Binance
You’ll see that many of CryptoCompare ‘s top picks are also top names in the industry. These exchanges are extremely popular with American and global investors, although some, like Kraken, have ceased to offer services in some American jurisdictions as prominently reported in past months.
The Exchange Benchmark is not the only new project that CryptoCompare is embarking on – prior news shows that CryptoCompare partnered with NASDAQ earlier this week to create a cryptocurrency pricing product for institutional investors – which may advance that institutional buy-in needed to explode blockchain systems toward critical mass.
CryptoCompare also is rumored to be looking to partner with exchange BitMex to build real-time crypto futures menus.
All of that helps to fine-tune an industry where many vanguard firms and individuals are calling for more regulation, more precise handling and additional financial security. Look for these and other advanced to propel the “common coin” toward a better position in the world marketplace.
