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During the big crypto wave of late 2017, the determining factors were mainly based on fomo and speculation. The following year was another story: the sale took off and inexperienced traders ran to the hills. Serious players have stayed in the game and they do not come much bigger than the Nasdaq which now works with seven different cryptographic exchanges.
Volume manipulation is a concern
Nasdaq's proprietary monitoring technology is available to those who can afford the price, but cryptographic exchanges require more than just money. Stories of manipulation of trading volume and market capitalization in the industry have increased in recent months, so the need for fraud-free figures has never been greater.
According to Forbes, Nasdaq has a team of about 20 people who work on due diligence processes for cryptographic exchanges by ensuring that they meet strict reporting and security standards. . Only seven cryptographic exchanges pbaded this test and only two were made public; Gemini and the SBI virtual currency.
The demand for technology is increasing as more exchanges open up and join the competition to attract customers. To get the upper hand, they need reliable volume figures and Nasdaq has become the norm in this area. Tony Sio, the head of Nasdaq's regulator trading and monitoring, told the media yesterday about some information on how the company is organizing new exchanges.
"Historically, we do not perform such a large audit process for our clients as they are much better known. But when we started working with less known names, startups, we realized that we had to do this verification process, "he said.
The selection process is divided into three categories; Business Model, KYC / AML and Exchange Governance & Controls. The first concerns the reputation of the chips available for trading on the stock market. Nasdaq is concerned about who uses cryptography and how it is used.
The KYC / AML part also deals with the organizational structure and the history of the owner in terms of technical and financial market knowledge. Nasdaq applies its own KYC trading procedures and only wants to work with proven entities. The third criterion is the encryption token list process and its clarity. Some exchanges are rather vague regarding new listings, others such as Coinbase publish their processes.
The use of the Nasdaq SMARTS monitoring system will be a valuable badet for any cryptographic exchange in an increasingly crowded market. The company is also heavily invested in a number of cryptography startups and believes in the future of the badet clbad.
"The goal we are trying to work with cryptography is that we see this as a growing badet clbad. So we work to provide our technology. It could be a match, a monitoring, to help our customers develop their markets, "added Sio.
The interest and participation of financial heavyweights testify to the longevity of an industry that is just beginning.
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