Cryptocurrency Exchange Data Provider Adds Alternative Data

Cryptocurrency data provider Consilium Crypto aggregates data across forty-five digital asset exchanges globally, increasingly supplementing its information with alternative data sources.

Consilium Crypto’s core offering includes prices, volume and order books for over 16,000 digital asset pairs sourced from over forty-five exchanges in North America, Europe and Asia.  The firm says it captures 90% of global trading activity in cryptocurrencies, collecting more than 600 million trades per month.  Data is primarily delivered through APIs but the firm also has developed dashboards to showcase metrics such as volumes on exchanges, volatility and correlations.

To supplement its market data on digital assets, Consilium is also developing alternative data.  It is piloting sentiment analysis on cryptocurrencies derived from Twitter and Reddit.  According to co-founder Vincent Haeger, the company initially tried to use ‘off-the-shelf’ natural language processing models but ended up developing its own model trained with conversations from trader chat rooms associated with cryptocurrency exchanges.  “Our custom sentiment model doubled the overall precision when compared to the-off-shelf model, with a precision of over 88%,” Haeger said.

Consilium is also working on deriving metrics from blockchain-level analysis such as network value to transaction ratios, hash rates and wallet-level transaction counts to more accurately monitor the flow of money in digital asset markets.

The Toronto-based company was co-founded by Haeger, Austin Hubbell, and Fadi Hariri nearly two years ago.  Hubbell and Haeger had worked together a FX-oriented proprietary trading firm and found that data on cryptocurrencies was fragmented, low-quality and difficult to integrate into existing models.  The company’s core cryptocurrency trading data was launched in April 2018.

Consilium, which currently has four full-time staff and three part-time employees, has operated from funding provided by the three co-founders, supplemented with equity investments from accelerators in Montreal and Toronto.  It recently opened a seed round with most of the raise targeted to developer salaries.

Consilium Crypto is collaborating with cryptocurrency asset manager 3iQ on a report analyzing liquidity and correlations across the various crypto exchanges, which it plans to release in the next month or so.

Our Take

Sentiment data on cryptocurrencies is not new.  StockTwits launched social media sentiment analysis for cryptocurrencies in March 2018 and TipRanks began a similar service shortly after.  Nasdaq was planning to add cryptocurrency sentiment data to its Analyst Hub before it acquired Quandl (Nasdaq has subsequently taken down its Analyst Hub and replaced it with a link to Quandl).  Given its extensive connections to digital asset exchanges, Consilium has an advantage in the depth and quality of the sentiment data it collects.

More broadly, the scale of the cryptocurrency exchange data that Consilium collects is large enough to perhaps qualify as alternative data in its own right.  Adding blockchain-level analysis of the market data increases its granularity.  Irrespective of the success of its cryptocurrency sentiment data, Consilium Crypto is a significant addition to the alternative data space.