CoinMarketCap Now Provides Crypto Investors With Data on Liquidity

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Crypto analytics provider CoinMarketCap has announced a new metric for liquidity of crypto exchanges and token pairs, designed to replace volume as the principal metric.

Leading crypto data site CoinMarketCap has announced the launch of its new metric to compare exchanges and token pairs based on liquidity.

New gadget on the dashboard

The announcement comes from The Capital, CoinMarketCap’s inaugural conference in Singapore on Nov. 12, and the tool is now live on the company’s site. The new metric will reportedly incorporate data from 3000 crypto assets.

Intending to filter out market manipulation, CoinMarketCap will reportedly base the new liquidity metric on adaptive data. Carylyne Chan, chief strategy officer at CoinMarketCap, elaborated on the firm’s aims with their methodology:

“We believe our adaptive methodology will make our metric very difficult to ‘game’ as orders would need to be placed close to the mid-price, or risk being counter-productive to the Liquidity metric scoring.”

Liquidity > Volume

The firm said that it sees its new metric as a way of escaping dependence on volume reporting, which is often subject to wash trading and other means of manipulation on different exchanges. At The Capital, Chan said that “volume has lost its value as a metric.”  She further explained CoinMarketCap’s desire to shift focus away from volume: 

“Today, we are introducing a new metric to highlight what matters most to investors and traders: liquidity. With our Liquidity metric, we hope to provide public good to the crypto markets by encouraging the provision of liquidity instead of the inflation of volumes.”

As of press time, CoinMarketCap had not responded to Cointelegraph’s request for more information. This article will be updated if Cointelegraph receives more information. 

Other new tools from CoinMarketCap

As Cointelegraph reported at the time, CoinMarketCap initially teased their planned liquidity metric at the end of August, in which they cited Nov. 12 as their target date.

In July, CoinMarketCap, alongside crypto news outlet Crypto Briefing, launched a new institutional-grade analysis product called Simetri. The product aims to provide verification and transparency in order-book data from crypto exchanges.

Original source: https://cointelegraph.com/news/coinmarketcap-now-provides-crypto-investors-with-data-on-liquidity

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10% of MoneyGram’s US-Mexico Business is Crypto-Enabled

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We asked for more context on the soundbyte statistic.

An estimate by the World Bank pegged 2016’s global remittance market at $573 billion, and a whopping $422 billion of that went to developing countries.

The simple act of transferring money from one country to another — more formally known as remittance — is one economic heavyweight of a market, yet blockchain technology is poised to change its operations anyway. Already well-suited for securely transferring units of value around the world, the same technology that powers Bitcoin holds great implications for the world’s remittance businesses.

Ripple is among the most relevant companies for those looking at this space through a fintech lens — its On-Demand Liquidity platform and XRP cryptocurrency have been part of how mainstream remittance company MoneyGram operates since August 2019. Speaking on stage at Ripple’s Swell conference, MoneyGram CEO Alex Holmes let it fly earlier today that 10% of his company’s business between the US and Mexico happens with help from Ripple’s On-Demand Liquidity.

10% of what, though?

The fluffy but blockchain-positive bit of publicity on Ripple’s website calls much more attention to the statistic. It’s exciting prospects if cryptocurrency technology can account for 10% of how a major remittance company does business between two countries, but when was this milestone reached, and that 10% figure accounts for what size whole? Reached for comment, Holmes went into limited detail:

“The 10% relates to the ODL (On Demand Liquidity) platform and represents the percent of our Mexican peso volume that we trade. We take USD and buy Mexican pesos. We continue to work with Ripple to build liquidity. We now have four new corridors we are starting, including the Philippine peso and Australian dollar. True success will be determined by others joining the platform, so it’s early days.”

For not wanting to reveal the size of MoneyGram’s US-Mexico business, Holmes seems happy to talk about the technology’s potential to bring ease of international transaction to new countries.

Original source: https://cointelegraph.com/news/10-of-moneygrams-us-mexico-business-is-crypto-enabled

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