An American stock exchange Nasdaq is preparing to launch a new tool for predicting the price movements of cryptocurrencies on its Analytics Hub, which will provide institutional investors with the ability to trade hundreds of crypto assets.
Nasdaq is the second-largest exchange in the world by market capitalization, behind only the New York Stock Exchange. In 2006, the status of NASDAQ was changed from a stock market to a licensed national securities exchange. In 2013, NASDAQ was approached by private equity firm Carlyle Group about taking the exchange operator private, but the talks fell apart over a disagreement on price. In October 2015, Nasdaq unveiled Linq, a solution enabling private companies to digitally represent share ownership using blockchain-based technology.
Moreover, Nasdaq powers centralized cryptocurrency exchange, DX Exchange, which represents the free trading model. Recently, DX Exchange has announced that it managed to onboard 500,000 pre-registered users ahead of its official opening, which is a very important milestone for the platform.
Last year, Nasdaq launched its Analytics Hub which can parse through social media and other alternative data sources to give investors information about market movement. Currently, the Hub is focusing solely on traditional assets, but as Wall Street’s interest in the nascent sector is growing, crypto information will be probably given to investors as well.
Bill Dague, Nasdaq’s head of alternative data, told CoinDesk:
“Given the abundance of interest, we are exploring cryptocurrency related datasets.”
“Whether or not we launch a crypto-related product remains to be seen.”
According to an internal source, the launch is set to be conducted in November, and at the moment, the new crypto functionality is being beta tested. The source further stated that the service would support 500 crypto assets, and its analysis includes looking at fund flows via wallets, data from exchanges and social media.
“There’s the social media sentiment part, so applying machine learning and NLP, which will start with Twitter and might include StockTwits and then eventually perhaps Reddit.”
Currently, the crypto market is experiencing not the best times, as major currencies have declines in prices. Thus far, Bitcoin has fallen nearly 70% from its all-time high, Ethereum is down over 85% from its all-time high, and Ripple is down over a whopping 90%. Another setback for crypto investors is the suspension of trading in the securities Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) announced by Securities and Exchange Commission (SEC). The suspension is said to be temporary, that’s why crypto enthusiasts are still optimistic.