New research has found evidence that informed traders and investors’ information asymmetry is driving the huge price swings in cryptocurrencies.
There’s an old meme that, on the internet no one knows you are a dog. Since search became prevalent on the internet, the question of who you are has been answered through available data. This is the problem with social media. It presents a few short data points without much substance. If the source is credible or supposedly believable, and the sound bite is good, it can become viral. This unverified sound bite then pervades more information feeds to more people. If this sound bite is repeated enough, it becomes reality.
Bitcoin markets are constantly influenced by new information. They are actively traded 24 hours a day, seven days a week, and traders are heterogenous and need to adapt to ever-changing market conditions. While asset pricing theory states that all market participants act on the basis of the same information, in reality information is not equally distributed. Traders receive information at different times or interpret events and information differently.
This is an information asymmetry and a stack overload problem for investors. There is too much information overloading their circuits. This overload pervades the decisions they make.
Aman was one of the key people behind CoinDCX’s learning platform, and has managed crypto funds and crypto communities. He possesses deep knowledge on crypto investing and set out to solve this contradictory problem of information overload leading to information asymmetry.
In early 2021, they ideated Moving - Twitter for next 100 million crypto investors - a home base for new-age investors. Moving makes this possible with bite-sized access to news, insights, and verified knowledge, and a social feed to share real time advice with friends and expert investors.
Aman Sanduja, an engineer by chance and a 3rd-time entrepreneur, brings in-depth knowledge on crypto and is in charge of the overall operations of Moving. Praveen, the core developer, handles all the product and backend functionalities for Moving.
The global cryptocurrency trading market stood at USD 754.0 million in 2019 and is projected to reach USD 1.7 billion by 2027, exhibiting a CAGR of 11.2% during the forecast period. The total market capitalization of cryptocurrency stands at USD 2 trillion.
High growth in venture capital investment is one of the key factors due to which the market is anticipated to rev up during the forecast years. Moreover, transparency and immutability of the distributed ledger technology is positively impacting the growth of the market during the forecast period.
Increasing digitization across industries represents one of the key factors driving the growth of the market. In line with this, easy accessibility to and rising penetration of high-speed internet connectivity in daily activities is also creating a positive outlook for the market. Furthermore, legalisation and approval of purchase, sale or trade of virtual currencies in various developed countries are also driving the market growth.
Moving is a go-to platform for crypto news, insights, and verified knowledge. Moving is personalised, simple and insightful which offers bite-sized informative content with zero clutter - removing intimidating information online.
Moving is the first to market in India, with a few indirect competitors globally. With an exceptional founding team which brings domain expertise, they are best suited to build and scale Moving. Moving is also extremely pocket friendly and reliable. Operating on a freemium model, it offers two plans to its users. The basic plan is forever free, whereas the paid plan offers premium features.
People’s interest in Cryptocurrencies is growing exponentially in India and across the world. Moving fills the dire need for a reliable and understandable source of crypto news for the masses.
This team comes with the right background of tech, UX, and consumer growth to be able to build Moving. They are applying AI to news aggregation. The founder has a clear vision and is building to scale. 100X.VC is confident in their GTM and adaptability of the product built over multiple iterations. We are excited to be a part of their journey!