Nomics, a crypto data, analysis and aggregate service supported by Coinbase, has just announced a new product which is targeted at promoting proper trading volumes in the crypto sector. Called the “Transparent Volume”, the service will determine exactly how much of publicized trades are actually real.
Transparency Volume and Transparent Exchanges
According to Nomics:
“Transparent volume represents the amount of volume deemed ‘trustworthy’ and high quality by Nomics. ‘Transparent Volume’ might just as well be called ‘Trustworthy Volume.’
Nomics believes that the new service would be very beneficial for the sector because it will properly track all the cryptocurrency that goes to and from several exchanges, which will be used easily by interested investors.
Nomics also mentions “Transparent Exchanges” and explains that this transparent volume will be calculated as the exact volume a particular virtual asset records as it passes through these transparent exchanges. On what qualifies as a transparent exchange, Nomics says they are exchanges whose full data history is marked with high granularity. It believes that for an exchange to be truly deemed transparent, it must provide data on all of its listed virtual assets, all the possible pairs for the asset and must provide this data as far back as the very beginning of the specific pair trading on its platform.
Nomics co-founder and CEO, Clay Collins, has explained the importance of transparent data and the problems that have arisen from fake or washed data. Collins also mentions what it takes to be considered an active asset on Nomics. He says:
“We currently list 3,873 assets on Nomics (2,502 of which are actively traded). The cutoff to be in the top quartile of actively traded assets in terms of percent transparent volume is around 1 percent. That is, if you have over 1 percent transparent volume for your cryptoasset, you’re in the top quartile.”
Collins also adds a surprising detail. According to him, only Binance Coin (BNB) has a transparency score higher than 30 percent, among the top 10 crypto assets by market cap.
The Nomics announcement also explains that the transparent volume metric will be advantageous to institutions, state actors and investors alike. The data will easily be used to assess the percentage of reported trading volume for a given cryptoasset that is auditable and transparent.” It also adds that it will help regulation especially with the SEC.
“One of the SEC’s major concerns in approving a Bitcoin ETF is the percentage of trading volume that is unsurveilled and subject to manipulation, toxic influences, etc.”
Other Nomics News
Nomics concluded its Series A funding round back in December 2018. The firm was able to raise $3 million in the round led by Coinbase and Arthur Ventures. Other involved parties at the time included Digital Currency Group, King Capital, CoVenture Crypto, TokenSoft, CityBlock Capital and a few others. At the time, Collins said the money that had been raised will be expended on adequate research for the deployment of new products.