The digital asset marketplace has been gaining massive traction over the past few years, with 2019 seeing the formidable rise of spot and Futures trading. However, due to a lack of constructive data, many Futures products have failed to meet regulatory standards, a development which led to the limited adoption of digital assets across the world.
In a recent article, Thomas Chippas, CEO of ErisX, and Adam Zarazinski, CEO of Inca Digital Securities, discussed the critical importance of improved market data which could lay down a foundational base for sustaining a new class of digital assets.
According to Chippas, institutional-grade data is essential to understanding the digital asset market maturation and by extension, the increased adoption of crypto-assets.
Earlier this year, a Bitwise report submitted before the SEC had stated that over 95 percent of the exchange volume across the market was fake, a finding which underlined the problem of loosely based market data on digital assets. In order to improve the marketplace of digital assets, so that it resonates with the same significance of other traditional commodities, quality data is a necessity, Chippas said.
The CEO of ErisX also highlighted that the company is developing infrastructure that would be focused on providing access to virtual asset markets, in a manner similar to investor experience in the traditional marketplace.
Adam Zarazinski, CEO of Inca Digital Securities, added,
“If you have the right data and systems to analyze that data, you’ve built the foundation for market maturation.”
Additionally, Chippas claimed that it is important to understand the difference between the crypto marketplace and traditional assets because the digital asset space is influenced by miners and developers. Regulatory actions taken by lawmakers and policymakers are mediated via social media platforms.