Coin Metrics, a Crypto analytics firm partnered with Social Market Analytics (SMA) over a feed of real-time sentiment towards cryptocurrency based on social media data, as per a press release on June 17.
The partnership is to collect and analyze data posted by crypto community on social media so as to provide a new tool that will help crypto traders to track social media sentiment data, subsequently to build their portfolio strategies.
Initially, the new product will target sentiment data only on social media giant Twitter. Coin Metrics CEO Tim Rice confirmed that firms are currently not considering the integration of the service into Facebook.
Collecting Sentiment Data
Coin Metrics will specifically incorporate the product into market data platform dubbed as SMA cryptocurrency Sentiment Feed. The platform will provide calculated metrics of data on Twitter, as per a report by crypto media outlet The Block.
The publication quotes Rice stating that the calculation algorithms would include relevant tweets and calculate “19 different aggregate sentiment metrics down to snapshots of one minute.”
The analytics will provide social media-powered predictive data analytics that will aid traditional capital markets participants in various markets such as stocks, forex, Exchange-Traded Funds (ETFs), futures. Establishment in 2012, SMA has been Twitter Finance partner since its inception as stated by Joe Gits, the firm’s CEO.
As for Coin Metrics, it received backing from major American investment management company Fidelity in February 2019, during a $1.9 million funding round.
Social media giant Facebook released the white paper for Libra, its long-anticipated cryptocurrency and the blockchain-powered financial project.
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