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Cryptocurrency analytics firm Coin Metrics has entered into a partnership that will see it harness data from crypto Twitter and help its users get a better outlook on market sentiment. In its press release, the company stated that the new partnership with Social Media Analytics will help its users have a deeper understanding of cryptos.

 Alternative data from social media platforms has risen in prominence, especially for traders in forex, stock markets and cryptocurrency, the company stated. With the partnership, the two companies will collect, analyze and provide this data to traders, enabling them make more informed decisions.

Known as the SMA cryptocurrency Sentiment Feed, the new product will target Twitter exclusively for now. Speaking to Cointelegraph, Coin Metrics’ CEO Tim Rice revealed that his firm is currently not planning to integrate Facebook data.

Crypto traders are now relying on diverse sets of data to make their decisions, Rice added, stating:

“As the crypto investing market continues to mature, institutional investors are demanding data from trusted partners. These institutions are looking to make data-driven decision by accessing sources of data that they understand from their legacy investing frameworks. We believe that the power of combining sentiment data with granular network and market data is fundamental to building a deeper understanding of crypto assets.”

The feed has been designed to eliminate the chaotic aspects of crypto Twitter, he revealed. The two companies have developed an in-house program that excludes tweets from bots and spam accounts. Rice explained, “Bad Bots and spammers are eliminated from calculated metrics. A calculation engine then takes the relevant Tweets and calculates 19 different aggregate sentiment metrics down to snapshots of one minute.”

Quant-based traders, who rely on quantitative analysis to formulate trading strategies, have already expressed an interest in the product. Rice expects it to lure more traders.

Social media data will be an invaluable addition to the other strategies used by crypto traders, Joe Gits, the CEO of SMA believes. He stated, “We feel strongly at SMA that participants in cryptocurrency markets will benefit from our unique process in this emerging field, both in its approach to filtering social media data and in the analytical methodology used to develop our proprietary metrics.”

SMA has been providing social media-based data analytics to major global financial giants involved in the stock market, futures, ETFs and forex markets. Founded in 2012, it has grown to become a Twitter Finance partner, with Barclays, Fidelity and Cboe being among its clients.

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