Volatility indices are essential to options traders and Risk Managers. Yet robust, reliable, and granular volatility indices have been missing in the digital assets space.

The Merkle Data team built its own volatility indices, the BTC-MVX and ETH-MVX. They are based on Deribit BTC and ETH options order-book, following a similar methodology to that of the VIX published by the Chicago Board Options Exchange. We adapted to the digital assets space by designing our volatility indices to be robust and timely in capturing changes in the options order book. Our MVX indices are also accompanied by a real-time certainty index.

Prices of digital assets rallied since April 2. In a press release, Reuters attributed it to a large BTC buy order of $100Mn on Bitstamp, Kraken, and Coinbase. Merkle Data analyzed further trades, volumes, and on-chain activity. We found unusual liquidity patterns across exchanges and pairs following the order.

I am Louis Baudoin, the CEO of Merkle Data. My team developed the most advanced portfolio analytics and market risk solution for the digital assets space. We recently added a liquidity risk product to our market risk solution. Before and during the recent price rally, we found interesting liquidity patterns using…

Recent analysis of crypto-currency exchange order book data showed evidence of wash-trading via unseemly large price slippage in comparison to published volume. Here the Merkle Team shows how Intra-Exchange Velocity (IEV), which measures the average number of times an asset changes hands inside an exchange can provide an additional method to benchmark and investigate crypto-currency exchange behavior. IEV is derived from exchange published volume and blockchain level analysis to total token holdings of users inside an exchange.

An unregulated market that traffics in speculative assets is bound to attract questionable actors and practices. Among crypto exchanges, one of the tricks…

Merkle Data’s mission is to provide accurate and actionable blockchain data and analytics to investors and companies. The data on which this article is based was delivered to Merkle Data’s clients in real-time on May 28.

Executive Summary: In the run-up to the launch of the EOS mainnet, we’ve noticed some surprising activity. Namely, large EOS holders (early investors and supporters) have moved their tokens into exchanges, in preparation for potential liquidation. This activity happened slightly before Qihoo 360, a major cybersecurity firm in China, disclosed serious security vulnerabilities in the EOS codebase. More below.

One of the most closely…

Merkle Data

Risk solutions for digital assets institutions

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