Coinbase-Affiliated Nomics Launches Trading Indices As An Alternative to CoinMarketCap
A cryptocurrency trading data firm Nomics has released Transparent Volume service that will calculate the amount of real volume traded on various crypto exchanges. Through monitoring the amount of crypto assets moving within an exchange, Nomics says that it can now empower investors in real time.
Nomics is backed by renowned investors such as Coinbase and Digital Currency Group and was started in 2018. The company calculates these trading volumes, which it calls transparent volume, by adding the trading volumes of a cryptocurrency in several exchanges. This transparent volume is later divided by the total “official” trading volume in order to find out the percentage of transparent volume.
Speaking to CoinDesk, Nomics CEO and co-founder Clay Collins said that as per the firm’s data only 17% of Bitcoin trading volumes are trustworthy, while this figure drops to 8% in the case of Ethereum.
Nomics has a ranking of 167 exchanges based on their transparency in terms of data sharing. Some well-known trading platforms such as Coinbase or Binance can get A or A+ if they share not only their trading volumes, but also their complete trading history and raw trade. On the other hand, other exchanges get a D when they only share their ticker data, their 24-hour volume and their trading prices.
The company has explained that both BTC and ETH show such low levels probably because these cryptocurrencies are traded on both A and D rating exchanges. Collins explained that the two coins most popular coins, in fact, have the two highest raw transparent volumes among the 3,873 tokens Nomics lists on its website. Meanwhile, less popular coins that only trade on a few exchanges, such as Binance’s BNB, can outperform BTC and ETH in the percentage index.
Collins explained that BNB only trades in Binance or related exchanges and, as a result, it has a high transparent volume as its trading platforms are highly transparent.
Crypto data transparency is a major issue in the crypto space and Nomics is following on the heels of Messari Crypto which released its own version known as ‘Real 10’ last spring.