CoinMarketCap (CMC), the most-often quoted source for cryptocurrency data, has made its first acquisition. It has acquired Hashtag Capital, a company that builds technology that reportedly provides a “true price” for digital currencies through algorithms that can analyze “all points of available liquidity” in an effort to provide a more accurate indication of an asset’s price.
Hashtag began as a crypto trading fund offering absolute returns. From there, it branched out to create market data to support its fund management in an effort to have access to more reliable data. This became the catalyst for CMC to consider a possible Hashtag acquisition, the value of which has not been released.
Once the acquisition is finalized, the team from Hashtag will be integrated into CMC’s group completely. A press release from CMC on the subject states, “The team will be joining CoinMarketCap after the acquisition to further develop pricing algorithms and continually improve our data offerings. As part of our sixth anniversary announcements in May this year, CoinMarketCap announced our Data Accountability & Transparency Alliance (DATA), initially focusing on increasing the availability of data for meaningful analyses for users. The liquidity-focused products developed by Hashtag Capital will drive part of the effort on DATA.”
CMC CEO Brandon Chez adds, “We are excited to push the envelope on cryptocurrency pricing at CoinMarketCap, going beyond our traditional volume-weighted average prices to even more sophisticated price algorithms and analyses. The Hashtag Capital team will be able to add significantly to our data efforts, and drive the next phase of CoinMarketCap in providing data products to the market.”
CMC asserts that its goal is to provide data that has the largest amount of visibility and breadth possible, as opposed to only providing pricing details based on the listings of a select number of exchanges. It asserts that this allows it to offer greater accuracy and that the acquisition of Hashtag will further that goal.
Carylyne Chan, CMC spokesperson and recently-appointed chief strategy officer, adds in the press release, “We are really excited about the future progress at CoinMarketCap! With the new data efforts we will be launching, in addition to our DATA Alliance, we will be able to provide a truly comprehensive platform for our users and customers, and pave the way for continued industry-wide involvement in crypto data development.”
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