Santiment is creating a Better Way to Trade Crypto-Markets by providing Market Data feeds, Newswires, and Crowd Sentiment Insights for the Blockchain World. In order to provide block chain analytics and bring a better picture. Feeds that give the investor an edge, easier to make a more coherent analysis. Santiment will also provide curated data feeds. Information is a competitive edge and edge has a price. Santiment provides this edge at a price. In this interview, Mitchell Loureiro Marketing manager and Santiment explains in more detail how Santiment creates value and then monetizes it.
My experience running around for info on crypto projects tells me that Santiment’s market prediction “game” this will attract a lot of users. A parallel to this would be ICO bounties which tend to be picked up by many. The challenge is that there is a fine line between quantity and quality. Any kind of bounty is relative to the local spending power, and users which will value these bounties most will most likely not have a lot of significant trading power. The whales will be focused elsewhere. How does Santiment solve this dilemma?
The sentiment tracker and prediction game are just a few of the data feeds we’ll provide, but
the bounty problem proves relatively easy to solve. The desired data is that which reflects consistent market performance; Those who score well will have this score integrated into a reputation system. This reputation will be showcased alongside financial content and data feeds they create. Highly accurate game players will have a reputation that reflects their expertise… and making that content far more lucrative and safe to buy for traders and investors. This allows them to raise prices or increase market size, since everyone wants to follow the trader who can predict the market.
Q: The MVP (Minimum Viable Product) will collect data through gamification and rewards to players that that indicate their sentiment about specific coins. This will predict the future. Is there any value in analysing the past?
There is definitely value in analyzing past transactions and value movements. In the future Santiment will launch data feeds that give easy access to this kind of blockchain-specific data, allowing you to understand network behaviours at a glance.
Q: It is impossible to predict the future, and Santiment has stated this is not its objective. Rather it will serve as an indicator to monitor fear or risks in the crypto markets before chicken little rushed into the town hall screaming fire. What is the difference between the two? Is greed harder to analyse?
The future is impossible to predict, but aggregate human emotion is less complicated. And in the current market, there is a strong link between market sentiment and market trends. By analysing FOMO, greed, fear, and depression in market participants, Santiment users will have an information edge in their trading. The goal is not to ‘be right’ all the time (which is impossible), but to maximise the percentage of correct calls we make. And for the crypto-markets, market sentiment is the key. Going forward we’ll add other data feeds for Santiment users as well.
Q: There could be groups of users gaining trust in the system in order to make a false prediction in the future for financial gain. What kind of self-correcting mechanisms are you planning for the Santiment system not to be gamed?
Regarding anti-gaming measures, that’s absolutely correct. This is why we’ll have a cluster of reputation measures, all of which will be transparent. Users will be able to see visualised representations of reputation over time and how that relates to trading performance, then make their own call on whether these people are worth buying information from. We expect that the safest content and data feed providers will nurture positive scores for all prongs of reputation. But beyond that, there is always the chance that someone could decide, at any point, to throw away their reputation and give false advice while discretely trading the opposite direction. This possibility can never be eliminated, it can only be mitigated by stretching the financial reputation out through time, making it very expensive (in time and energy) to build and making it very lucrative to keep.
Q: It seems that Santiment has a strong community focus, after all it is the users who will power the prediction. The pre-sale was sold out in 2.5 hours. Santiment regarded the distribution of pre-ICO shares well distributed. Will the next token sale contain any systems to make the tokens accessible to even more investors?
Great observation Jim; You’re 100% right, the community is a huge focus here at Santiment.Santiment WaveWe believe the future of Santiment is a platform of data feeds supported and directed by the community… that’s why we’re aiming for a healthy distribution. We are testing a mechanism that would allow us to give early crowdsale access to Santiment community members (which are mostly in the Santiment Slack and email list). They would be able to send ETH in advance and ensure their place in the distribution. By doing so, we hope to create as healthy a community as we can.
Q: When is the next token sale scheduled for?
The crowdsale is scheduled for the 4th of July end of June.
Q: What happens to the FIAT subscriptions Santiment collects?
It is likely we will use part of it for buying back tokens and then use them again for rewards.
Q: What is the most important lesson you would like to share with aspiring blockchain developers?
Be honest, make a great product, and be responsible. We are creating a new world, and it will come brighter and faster if we support one another on the way there. There are no barriers to entry in blockchain tech either, so get working!
We thank Mitchell Loureiro for the interview.
- How important is extra / unique information when trading?
- What are your primary information sources for trading cryptocurrencies?
- Would you pay for information that gives you an edge when trading cryptos?