Reuters Partners up with Bloomberg to Launch a Social Media Crypto Index

Bloomberg

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In the world of online crypto trading, information is everything. Traders need to receive all the data they can in real time so that they could make the best possible decision. However, as the crypto communities on social media networks mature, their insight could prove to be invaluable to others, especially when it comes to traders with less rich experience.

For that purpose, Thomson Reuters and Bloomberg decided to partner up and create a new crypto index based on social media and news commentary. That way, those trading on their platforms would receive a lot more information, and likely make better trading decisions, which would result in greater profits, while the losses would be reduced.

According to the recent statement by the index provider, Cryptoindex, traders would have access to valuable information regarding the top 100 digital currencies. They would be ranked according to volume, and the rankings would be rebalanced on a monthly basis. That way, Cryptoindex would have the opportunity to properly identify — and if necessary, eliminate — the scope for abuse through pumped transaction volumes.

The importance of the social media-focused crypto index

According to Cryptoindex, those looking to buy cryptocurrencies could trust its top 200 coins and tokens as they are almost all traded on various exchanges, and they have a major following on the social media networks. However, Bloomberg and Reuters won’t be the only ones to carry the data feed — TradingView, another website for tracking crypto prices, would also be able to provide users with access to the index. It would serve as yet another metric for crypto investment assessments, and as such, it should further help traders make the most beneficial decision.

According to the CEO of Cryptoindex, VJ Angelo, the index will also provide important insight for determining the sentiment throughout crypto markets. He added that the index comes from three decades worth of experience in the financial services industry. Angelo himself has witnessed the growth in demand for high-quality insight, which is why he created Cryptoindex in the first place.

The index would take multiple aspects into account, including the collective sentiment as it is on social media networks, as well as analyzed data of trading volumes, and even predictive analytics. It also compiles source data on around 1,800 cryptocurrencies, which is then used for filtering, and delivering the final rankings.

As mentioned, the data will come from multiple sources, including exchanges and various social media platforms, where the crypto community has the strongest presence. According to some reports, this includes more than 33 terabytes of information, from which around 200 factors get extracted.

While the new product will undoubtedly be useful to those who lack experience — it is also going to suit the needs of institutional investors, and even crypto professionals themselves. That way, the entire community can benefit.

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About Ali Raza

A journalist, with experience in web journalism and marketing. Ali holds a master degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications.