The analytic data provider Nomics announced the launch of the “Transparent Volume” service, designed to show the percentage of reliability of trading volumes on exchanges, reports The Block .
Coinmarketcap competitor provides information on trading volume transparency among more than 3800 coins and 167 exchanges. To do this, the trading volume of the asset is summed up at several exchanges, after which it is divided 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 unformed data. At the same time, exchanges with a low rating (D) give access only to ticker data, including daily volumes and prices. This data is mainly monitored by CoinMarketCap, the head of Nomics emphasized.
According to the service, the reliability index of bitcoin trading volumes at the time of publication was 16%, Ethereum – 7%. Binance Coin was the only top ten asset by capitalization with an index of more than 30%.
As Collins explains, this is due to the fact that BTC and ETH are traded on exchanges with both high and low ratings, while less popular coins, like the same BNB, can have a higher rate, since they are available at very a small number of sites.
“Assets such as BNB are traded primarily on Binance and its related exchanges. This creates high transparent volumes, as these exchanges themselves are very transparent, ”he says.
The head of Nomics also noted that his team was partially inspired by the well-known March report Bitwise Asset Management for the US Securities and Exchange Commission (SEC), which stated that 95% of trading volumes on unregulated exchanges are fake and devoid of any economic sense. .
The Nomics platform was launched in 2018, receiving financial support from a number of well-known investors, including Coinbase Ventures and Digital Currency Group. First of all, it is aimed at large investors and traders who want to see the true picture in the markets.
“We became the first aggregator to start evaluating exchanges according to the transparency of the data provided. This allowed us to attract a large number of new customers; exchanges are also contacting us. They say they want to be more transparent, and ask what they need to do to get an A rating, ” Collins added.
Note that in May Bitwise Asset Management sent a new report to the SEC, according to which only 10 of the 83 cryptocurrency exchanges analyzed passed a test aimed at determining whether the sites systematically overstated their trading volumes. These included Binance, Bitfinex, Coinbase, Kraken, Bitstamp, bitFlyer, Gemini, itBit, Bittrex and Poloniex.
Nevertheless, as the company noted, since 2018, the market as a whole has been showing signs of recovery.
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