CoinMetro has announced that it will now offer market sentiment data that was previously only available to big-name companies to lower level users. Retail traders have always found it hard to discern the accurate direction of valuation at specific times but those with access to the sentiment data, especially on twitter will have better pinpoint accuracy of when the price will drop or rise. Bitcoin tried to democratize finance and make it available to the masses, though this was not entirely successful, CoinMetro is attempting to do this with data.
The CEO Kevin Murcko says that ordinary users have a right to access this data as it is originally generated from the talking points of millions of such users. CoinMetro has decided to offer this data for free, where it would ordinarily cost a small fortune. The company seems to have read ‘Fortune at the bottom of the Pyramid’ by C.K. Prahalad. The data is being distributed through the CoinMetro platform with the help of TIE a top provider of alternate data for digital assets. The TIE is an analytics platform similar to Social Market Analytics but entirely focused on cryptocurrency. Their clients include hedge funds and asset managers operating in the digital space.
TIE will now provide raw actional classes of data to the numerous investors hoping to gain an edge in CoinMetro. CoinMetro was originally founded by leaders from the forex industry hoping to tap into the crypto market while providing users with the best advantages. The integration with TIE will provide general users with signals that point to a potential approval or disapproval within twitter. Crypto markets have always moved with the wisdom of the large crowd and no one person was ever able to influence it. This is because unlike Equities, there are no earnings, no revenue, or even a dividend pay-out. There is actually no universally accepted valuation for cryptocurrency. It depends solely on what people are willing to sell and buy for. The main movers in this environment are mostly emotional with fear, greed, and hype mixed in.
With access to the massive stores of twitter data, TIE processes almost 1 billion tweets every day. This is done through machine learning and natural language processing applications to provide a measurable sentiment at each specific time.
The data is available to all CoinMetro users for free. The details will become apparent when one starts using the platform but in a short summary, A sentiment score compares positive and negative conversations on twitter about specific coins in the past 24 hours vs last 20 days. A score above 50 means positive sentiment and below 50 means negative sentiment.
