By Kai Charette, Founder, Alttra
Evaluating the cryptocurrency market is difficult. The majority of traditional finance models depend heavily on past sales data. Cryptocurrency has huge potential, but the technology is at risk of a bottleneck in its adoption curve. This makes it hard to assess in terms of price, and thus putting a value on it for trade.
Nonetheless, this is an important space to watch right now. Institutional adoption is happening because the industry is moving in the right direction. Blockchain companies are becoming leaner and coming up with different ideas; meanwhile, there’s clarity coming from the regulatory front. As the capacity to understand the technology increases, so do the long-term odds of adoption.
We at Alttra have begun to establish a way to look for customer sentiment for future value, which can be as good or better than a technical analysis approach at assessing the strength of momentum. It’s a quantitative system that you can use to compare real-time data. In just a few seconds, our model shows when sentiment is likely to be influencing the price. It allows businesses and investors to assess the future value of a cryptocurrency by aggregating what the crowd thinks – what millions of people think – as compared to tools that only have past price data.
We’re using Naviga Newsfeeds to give context to the quantitative data set we currently are providing. Our partnership will enable users to visualize the Naviga Newsfeeds as the information enters the market and ripples through the social sphere. This will give investors the ability to forecast demand in the cryptocurrency market in an entirely different way.
Cryptocurrency has already seen two big waves of investment activity. The first was the exponential growth leading up to 2013. Then in 2017, we saw the next wave when the futures market took an interest. The next wave is just beginning, and we are going to see the space morph into something that is a lot more visible to the average consumer. Social sentiment is an essential tool that should be in every cryptocurrency investors toolkit.
About the Author: Kai Charette is an entrepreneur working in the Blockchain/Fintech space. He founded the information technology company Alttra Solutions in 2014. He has a Masters in financial economics and finance from Ohio Universtiy.