Nasdaq Planning to Add Crypto Price Forecasting Tools, Uses NLP & Machine Learning

Nasdaq, the globe's second-biggest stock exchange, is purportedly considering adding tools to its Analytics Hub which will aid users in forecasting the price trends of Cryptos. Introduced in 2017, Nasdaq's Analytics Hub applies Natural Language Processing (NLP) and machine learning to ascertain information on social media platforms.

Data ascertained by the U.S stock exchange's proprietary software can then be utilized by all investors to evaluate market conditions and to get insight on future price trends. Nasdaq's Analytics Hub has only been readily obtainable to traditional asset investors hitherto, albeit, Crypto traders might instantly be capable to utilize it as well. 

General Thoughts on 500 Digital Assets 

Bill Dague, Nasdaq's head of alternative data revealed that: 

“Given the abundance of interest, we are exploring cryptocurrency related datasets. Whether or not we launch a crypto-related product remains to be seen.” 

Trusted sources acquainted with Nasdaq's internal operations revealed that the firm's development of Crypto related tools is presently in the prerelease or testing stage and its first official release is planned for November this year. 

The newly developed Cryptocurrency Analytics software will purportedly offer 'sentiment' on around 500 digital tokens. Nasdaq's Cryptocurrency research tools will exploit a 'three-pronged method' to ascertain financial data. 

In addition to data shared on social media platforms and other different data sources, the firm's tools will track all transactions between Crypto trading platforms and wallets. Remarking on how the tools will forecast price trends, the source elaborated: 

“There's the social media sentiment part, so applying machine learning and NLP, which will start with Twitter and might include StockTwits and then eventually perhaps Reddit.” 

StockTwits is a social media platform which enables investors and traders to exchange tips and useful information related to Bitcoin trading and other traditional assets. Considering these initiatives, signs suggest that Wall Street companies are starting to become more interested in Cryptos. 

Dima Vol, the Global Ambassador at the Mile Unity Foundation project aimed to promote XDR stablecoin across the sector of retail, b2b and intergovernmental payments (g2g) for faster and secure transactions with lower fees, shared his opinion with Coinidol: 

   

“It is a good thing that Nasdaq is paying more and more attention to the cryptocurrency market as it is currently much smaller than real economy and shares market. It means that cryptocurrencies cannot be ignored and that they are becoming a legal instrument in many countries. It is important for many institutional investors to see that major financial players are being proactive. Such news contribute to new infusion of capital into the industry from large investors, which will positively affect the market in general.” 

Cryptocurrency Futures, Crypto Exchange 

In January 2018, Nasdaq CEO Adena Friedman noted that the US-based Crypto exchange was "under-seeking the idea of a Crypto future with a partner." Nevertheless, she further said that the firm would first consider the "risk management issues" that are related to launching that kind of a product. 

Furthermore, Adena noted that Nasdaq would only provide Cryptocurrency futures if there was "prudent demand and construct differs with what's already out there." In the month of April, this very year, the Nasdaq CEO noted that the prosperous stock exchange was also exploring to launch its own Crypto exchange. 

Inside sources operating closely with Nasdaq revealed that it was going to act faster in a struggle to start listing Cryptos by 2019.

Earlier last month, the Intercontinental Exchange (ICE), the New York Stock Exchange's (NYSE) parent firm, announced its plans to officially launch Bakkt, a Microsoft-Cloud based platform to trade, store and spend Cryptos.