When it comes to investing, any sort of investing, timing is of the utmost essence. Investors are constantly on the lookout for a brand new asset or a fresh piece of information that can give them the edge over the rest of the market. Since the introduction of automated trading bots into the world of finance, even a few milliseconds can make the difference between a failed trade and outperformance reduce the time difference between winners and losers. Furthermore, cryptocurrencies have given rise to 24/7 markets which make the role of round-the-clock intelligence even more important.
We’re All Flash Boys
Six years ago, popular business author Michael Lewis released his smash hit book “Flash Boys” which covered the exciting world of high-frequency trading. In the book, Lewis details the length to which Wall Street firms would go in order to make their trades ahead of the rest of the market. One company even cut through mountains to lay a fiber optic cable from Chicago to New Jersey just to gain an advantage of a few milliseconds.
If early detection is important for stock trading, where about 80% of all activity is automated, it is absolutely crucial when it comes to cryptocurrencies. Flash boys came out six years ago, right around the time when Bitcoin was barely 6 years old and Ethereum was taking its first steps. Since then, the exponential rise in automated trading tools and bots has further accelerated the pace of modern markets. By leveraging Crowdsense’s early intelligence software, traders and investors can boost their capabilities as they navigate the lightning-quick markets in both crypto and beyond.
How It Works
Hundreds of cloud servers scrape more than a billion unique sources from the entire web including Twitter, Reddit, Telegram, websites and media outlets. The data feeds are checked against Crowdsense’s proprietary algorithms and all the low-quality feeds are filtered out. Only the clearest, most credible signals make it onto the platform.
Crowdsense’s algorithm is also responsible for aggregating feeds that talk about the same event. It does that in order to reduce noise, avoid duplicate signals, and measure the impact and reach of each event. These signals are translated into alerts. Alerts are graded based on their urgency and grouped under the assets which they reference. Investors can receive these alerts either as notifications or by logging onto the Crowdsense hub.
Case Studies
Early Detection of China’s miner crackdown
The news about China’s mining crackdown has been coming out hard and fast as the once-leader of Bitcoin mining moves to squeeze out decentralized cryptocurrencies from its midst. However, on June 17th 2021, the market still didn’t truly believe that China would carry out its threat to ban Bitcoin. On that day, at 03:07 PM (ET), Crowdsense’s algorithm picked up information that a local government in Sichuan, a province in China that dominates Bitcoin mining, had ordered miners to shut off their machines. In the following 3 days, Dogecoin would follow the crypto market crash and lose 36.7% of its value.
Mark Cuban expands his crypto portfolio
One of the leading narratives in the crypto markets is the growing investments in second-layer solutions that aim to unclog some of the scalability issues facing legacy blockchains like Ethereum. Polygon, formerly known as Matic, is a leader in this field and has attracted a lot of capital and interest to date, including from Dallas Mavericks owner Mark Cuban. Traders using Crowdsense to listen to events were informed about Cuban’s Polygon purchase a full four hours before the news hit Bloomberg terminal, giving them enough time to act in advance of the 118% price rise that happened over the following 3 days.
US Department of Justice confiscates Bitcoin
Unfortunately, Bitcoin is a favorite amongst hackers and was once again the preferred means of ransom demanded by the hackers of the Colonial Pipeline Co. The hackers, believed to be an Eastern European group named dark side, demanded a ransom of 63.7 Bitcoins, valued at about $2.3 million to end an attack that led to major shortages at US East Coast gas stations. Crowdsense.ai detected a feed relating to the US Department of Justice tracking and recovering the ransom a full two hours before the Bitcoin price began to fall, giving our customers a noteworthy time advantage over the rest of the market as Bitcoin’s price dropped 8% over the next four hours.
Digital Currency Group buys $50 million worth of Ethereum Classic
Few companies in the crypto space command as much attention and influence as Digital Currency Group (DCG.) Based out of New York, the company is the owner of both leading blockchain publication Coindesk and the Grayscale fund, in addition to the venture capital work. Their portfolio includes luminaries such as eToro and Circle, so when they deploy capital, the market reacts. Such was the case when the group brought $50 million worth of Ethereum Classic, causing a 35% price spike over the following eight days.
Supercharge Your Trading With Superior Intelligence
It’s been a while since the world of investing was dominated by men in suits, screaming orders over one another in the heat of a trading floor. Today, the pace of the markets is dictated by sophisticated trading algorithms that operate at high frequency and can make split-second decisions to deploy massive capital. Leveraging Crowdsense intelligence could be the difference between preempting the markets and entering when it's too late to be profitable. Sign up today and start enjoying the Crowdsense edge!