Financial Data Firms Entering the Cryptosphere
Financial data companies are competing pretty hard with each other to become the authoritative source of information regarding cryptocurrencies. Money.Net, a large financial data company that provides real-time market prices, is spearheading an aggressive campaign to become a major player in the crypto data market by launching its own crypto-trading platform. According to the company, its trading service will let people trade up to 600 tokens. Morgan Downey, the CEO of Money.Net, would like his company to become the “Bloomberg of Cryptocurrency”.
Brand New Crypto-Pricing Tools
Money.Net will be introducing various crypto-pricing tools that will track over 500 virtual assets. The company also plans to keep investors informed about new ICOs entering the market. Mr. Downey, who used to manage the Bloomberg Terminal, thinks that traditional financial firms such as Bloomberg cannot be relied upon due to the frantic pace of the crypto-market. He also believes that veteran stocks and bonds specialists need to become more knowledgeable about cryptocurrencies. This sounds like good advice, considering some regulators have begun to classify cryptocurrencies as securities.
What Other Financial Data Firms Think
Money.Net is not the only company that’s interested in capitalizing on the crypto-data market. CoinFi, another major crypto-data platform, feels that there is no clear-cut way for investors to acquire reliable information about any particular alt-coin or ICO. CoinFi also stresses that there are extreme variations in prices from one crypto-exchange to another. However, the company claims that if traders use their services, then they should get the “best price execution”. Just how CoinFi will make this possible was not mentioned.
Bloomberg Also Active in Crypto-Data Services
As most crypto-enthusiasts might know, Bloomberg added bitcoin to its data terminal back in 2014. Just last month, the financial data giant also added Ethereum, Litecoin, and Ripple. So, we can safely assume that Bloomberg does not want to be left out of the crypto-market. This type of competition could be healthy, but it might also become more challenging or confusing to determine which set of data to rely upon.
What About Fraud?
Obviously, all financial data companies must consider the legal ramifications of offering crypto-related information. According to Money.Net, his company is well aware of fraud and price manipulation in the cryptocurrency market. And, their modus operandi will be to offer pricing data based on the ease of trading and overall trading volume of digital assets. This doesn’t sound too safe considering that a crypto-platform like TRON became a top 10 cryptocurrency but then took a huge plunge after major accusations regarding its whitepaper being plagiarized began circulating on social media.
The best course of action for any investor looking to tap into the crypto-market would be to tread very carefully and be thorough with their research. Hasty decisions could result in severe financial losses, as authorities have repeatedly warned.