Coming from the traditional finance world and having an extensive math background, where do you see value in crypto?
The answer is complex because the crypto ecosystem emerged as a geek, marketing, and startup product and an investment style of millennials. These various groups have not only seen a financial value, but also cross-border freedom, decentralization, and rebellion against the system. Crypto has been nowadays partially kidnapped from these groups.
Let's not forget that the measure of value three years ago was, for example, the size of the community on telegram. Some "values" which are not expressed financially today may also gain financial value in the future. We, who come from traditional finance and are quantitatively oriented, measure them, analyze them, and systematically separate marketing covers and buzzwords. We model this ecosystem and similarly, but with adapted instruments, regard it as a financial investment. At the same time, we have to be aware that it can mean something different for other stakeholders. Their ideas may seem to us (but nowadays the field of irrationality in society is wide and the line between right and wrong is very thin).
The reach of the crypto-ecosystem is wide, it can be money, benefits - DEFi, financial investment class, and even the space for investment. At the same time, it is an instrument of trade and as such it is exposed to the phenomena carried out by the crowd when they are under the pressure of fear and greed. In this respect, the millennials are not much different than the ancient Greeks. Many stock exchanges have gone through such periods, while human greed and fear are also eternal. Only the uninformed consider this to be something completely new.
Cognition is not easy because the field is new, broad, and poorly researched, while at the same time, the modern way of life limits the purity of thought. It blurs the focus to the essential and creates "freely" informed people.
Looking at your strategies, can you explain to us why you have four different strategies? Are they more for the average Joe or a more sophisticated investor?
The four different strategies were developed to show that different groups of Digital Assets behave differently under certain market conditions. Crypto Intermarket Analysis is a branch of technical analysis that examines the correlations between four major factors: Coins, Tokens, Ehtereum-based, and not Ethereum-based tokens. Chartists can use these relationships to identify the stage of the business cycle and improve their forecasting capabilities. There are clear relationships between coins and tokens. Knowing these relationships can help chartists determine the stage of the investing cycle. 2100NEWS is a professional provider of indices and tools in the field of digital assets, providing Crypto Market Intelligence, which either an average Joe or a more sophisticated investor can trust, while it also equips him with an information edge that he needs to stay ahead of the game. Our rational supplement is based on measurements and experience from financial markets. We have created DA indices as benchmarks and built the environment and participants with a rational view – which was previously lacking.
What is your take on liquidity? A lot of volume has no real backing. How do you track that?
Our DAOQE – 2100NEWS crypto DA (Tokens, Coins) orderbook quality evaluation is determined by taking into account “market quality” via quantitative order book data. We measure the market quality DA using a combination of six measures (derived from trading and order book data) which aim to measure trading costs, liquidity, and market stability. We analyse the market on the exchange with the highest volume. Our ultimate task here is to promote transparency in the industry so that investors are better informed about where they invest. Due to the fact that trading volume can be falsified, it is misleading to use it as the sole measure of liquidity.
What is your comment on recent monetary events (printing fiat money) and crypto development?
Fiat money printing is nowadays one of the most popular buzzwords. On this subject, some explanations seem logical and understandable, but are usually wrong. Central banks have the most knowledge about the capitalist economy and a deep theoretical quantitative knowledge. Just as cars, for example, have developed over the last 50 years in terms of safety and efficiency, central banks have also made progress in terms of knowledge. Their aim is to ensure that the amount of money in circulation is sufficient to minimize unnecessary suffering of the population through crises.
The preachers, who speak only about the amount of money in circulation, which is a less important category, explain in parables about the advantages of a horse-drawn carriage over the vehicle of the future, equipped with security systems and artificial intelligence. (If it were a car, they would definitely choose a futuristic one, not a carriage).
Crypto in the overall structure of the economy means negligible 0.3% and must easily adapt to the environment in which it is located. For someone with moderate knowledge of the system, it is hard to imagine crypto being a solution to these problems.
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