Coinbase-Backed Nomics Launches Trading Transparency Product

Nomics is launching a new data transparency product to prove how much real volume trades on exchanges.

AccessTimeIconAug 27, 2019 at 1:10 p.m. UTC
Updated Sep 13, 2021 at 11:23 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Bitwise’s "Real Ten" SEC cryptocurrency report continues to inspire integrity-centric products.

Data firm Nomics announced Tuesday its "Transparent Volume" service which calculates the percentage of real volume traded on cryptocurrency exchanges. By tracking the amount of cryptocurrency moving through an exchange, Nomics claims it can empower investors in real-time.

nomics-2

(Image via Nomics)

Backed by notable investors like Coinbase Ventures and CoinDesk owner Digital Currency Group, the data provider launched in 2018. Much like Bitwise's report, Nomics’ transparency definition comes from the availability of granular historical trading data.

Speaking with CoinDesk, CEO and co-founder Clay Collins pointed toward the regulatory hurdles lack of data transparency is creating:

“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.”

Of the top 10 cryptocurrencies by market cap, only binance coin has a transparency rating over 30 percent, Collins said.

Providing an API service for institutional investors, Collins says Transparent Volume is for investors of all stripes. Pointing towards Bitwise’s example, which released its SEC study in March, Nomics says transparency is found in the data.

"Our transparent volume metric is intended to help institutions, state actors, and investors assess the percentage of reported trading volume for a given crypto asset that is auditable and transparent," a release said.

Crypto data integrity continues to be an issue across the space. A report from CoinDesk in July showed the ease of one Moscow student faking trading volume for only a $15,000 fee.

Like Nomics, data provider Messari Crypto launched a similar product – its "Real 10" 24-hour volume metric – last spring.

Clarity image via Joel Filipe/Unsplash

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.