Coinbase to Help Determine Whether Coin is Security

The system, which is developed together with Kraken, Circle and Bittrex, will help exchanges to determinate whether a coin is a security under US law
01 October 2019   161

Bitcoin exchange operators, including Coinbase, Kraken, Circle and Bittrex, have developed a system to evaluate which cryptocurrencies are classified as securities under US law.

According to the Wall Street Journal, the system will help exchanges decide which digital assets to list and which ones to not deal with so as not to violate the requirements of securities laws.

A specially created Cryptocurrency Rating Council evaluates digital assets based on the rules and recommendations of the US Securities and Exchange Commission (SEC). Cryptocurrency project developers do not participate in asset valuation, but may provide additional information.

The rating structure assigns from 1 to 5 points to the asset in question. The highest value indicates that cryptocurrency has the maximum number of signs of a security.

The Council published the results of an assessment of 20 cryptocurrencies. Bitcoin, Litecoin (LTC), Monero (XMR) and DAI each received 1 point, which indicates the minimum probability of classifying them as securities. The same applies to Ethereum (ETH) - only 2 points.

Ripple's XRP was at risk with 4 points. Closer to this value, the ratings of tokens EOS, FOAM, Stellar (XLM), Tezos (XTZ), Augur (REP), Hedera Hashgraph (HBAR) and LOOM from Loom Network - 3.75 points.

The system itself selects digital assets for valuation, but may consider the application.

In addition to exchange operators, the founders of the Cryptocurrency Rating Council were custodial and trading companies of the industry, including Anchorage, a division of Cumberland holding DRW, Genesis Global Trading and Grayscale Investments.

Nasdaq to Launch Index, Based on 100 Crypto Assets

Neural network, considering 200 different factors, helped to create the list of the assets tracked by the CIX100 index
16 October 2019   84

Nasdaq, the world's second largest stock exchange, has added the CIX100 index based on 100 crypto assets, reports CoinTelegraph.

When building a basket of hundreds of leading digital assets, the tool from Cryptoindex.com uses neural network algorithms that take into account more than 200 different factors. Such a comprehensive analysis allows, in particular, to exclude coins with fake volumes.

It is also known that the index draws data on transactions on the nine largest bitcoin exchanges, and also analyzes information from social networks and the media. Only those coins that last in the top 200 for at least three months can become components of the CIX100. The composition of the index will be reviewed monthly.

According to the developers, the index will be useful for both newcomers to the industry and professionals.