Nomics.com, a provider of crypto market cap and pricing data, has piloted a new indicator, transparent volume, which represents the percentage of crypto-asset trading volume occurring on exchanges that have received an A+, A, or A- transparency rating from the company. An exchange can only earn a top transparency rating by providing Nomics with high-granularity market data, including full histories for each trading pair listed on a given exchange.
According to Nomics CEO Clay Collins, “One of the SEC’s major concerns in approving a Bitcoin ETF is the percentage of trading volume that is unsurveilled and subject to manipulation, toxic influences, etc. Nomics’ 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.”
For each crypto asset listed on Nomics, real-time transparent volume data is available in two places:
Transparent volume is much less likely to include wash trading and other forms of toxic volume because it is comprised of trade-level data with full histories, which are difficult to fake and easily auditable.
“We believe that, as an industry, we need to continually improve our ability to spot suspect crypto exchange behavior on a near real-time basis,” Collins adds. “And we need formal open-source methodologies that can be used by any independent third party to evaluate exchange activity in real-time.”
Based in Boston and Minneapolis, Nomics.com is an API-first market cap and pricing data company delivering services to institutional crypto investors and exchanges.