Kaiko Bi-weekly Newsletter: December 5, 2018

December 05, 2018

Kaiko Bi-weekly Newsletter: December 5, 2018

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Hello subscribers!

The Kaiko team just returned from a jam-packed week at Consensus: Invest 2018 in NYC, where we met with many exciting institutionally-oriented projects and investment funds. Last week, we also had the pleasure of announcing our partnership with BSO Network and Gemini exchange to provide real-time low-latency market data, the first such partnership in the cryptocurrency ecosystem. Additionally, we want to highlight our partnership with Cryptio, a start-up building accounting solutions for digital assets.

BSO Network and Gemini

BSO, the award-winning Ethernet network, cloud and hosting provider, and Kaiko are pleased to announce a partnership to deliver real time market data with direct connectivity to clients from connected cryptocurrency exchanges. The first implementation will see BSO delivering a live-streaming low-latency, secure market data feed for current investors of Gemini, the first cryptocurrency exchange to have collocated its servers in an institutional grade data centre. This enables a cross-connect to be implemented, thereby granting Kaiko clients direct access to data.

BSO’s global Crypto Connect network is built for the high-speed electronic trading community and enables cryptocurrency exchanges to provide institutional investors with the guaranteed latency they require for serious investment. The network is, of course, low-latency enabled as demand scales, and is available in over 100 data centre locations comprising all the major trading venues in the global financial community.

Kaiko-BSO rollout begins with Gemini, founded in 2014 by Cameron and Tyler Winklevoss. Gemini is a U.S.-based digital asset exchange and custodian that allows customers to buy, sell, and store digital assets such as bitcoin, ether, zcash, and litecoin. Phase Two of the BSO-Kaiko partnership will extend coverage to additional exchanges and deliver new sources of data for market participants who have been waiting for an improved infrastructure around cryptocurrency market data.

Partnership with Cryptio

We are also excited to announce our partnership with Cryptio, a digital assets accounting solution. Kaiko will provide cryptocurrency market data for Cryptio’s suite of accounting tools used for monitoring and reporting on individual and professional portfolios.

Cryptio helps companies better manage their crypto activity by tracking their investments over time, extracting and classifying their transactions, and providing customizable reports tailored to their needs. Using Kaiko data, Cryptio is building an indexed database designed with accuracy and transparency in mind. Cryptio will be using Kaiko’s market data API to access our extensive historical and on-going dataset.

Kaiko Research Highlight: Cryptocurrency Pump and Dumps

Using Kaiko market data, researchers at Princeton University and the University of Florida recently conducted an in-depth study of cryptocurrency pump and dump schemes (P&Ds). Their findings reflect the general assumption that P&Ds are both pervasive and detrimental to the broader health of cryptocurrency markets.

From the sample of confirmed P&Ds, the researchers were able to broadly characterize the average pump timeline from start to finish. Some notable statistics include:

  • In the first 70 seconds after the start of a P&D, the price of the targeted token increases by 25% on average and the trading volume increases 148 times.
  • On average, it takes only 2.6 minutes for prices to reach the maximum level.
  • A quick reversal occurs after the start of the P&D and after 1 hour, most initial effects have disappeared.
  • On average, only outsiders — those who receive pump signals later than others — who buy in the first 20 seconds after a P&D begins and begin selling 1 minute later can make a profit.
  • The average effect of P&Ds on volatility disappears in less than a day. The effects on price and volume last for 2–3 days.

Read the full summary here and access the research report here.

As always, if you have any questions or want to hear more about our data offerings, reach out to us at hello@kaiko.com!

Until next time!

-The Kaiko Team