In the crypto market, it’s often the early bird that gets the worm. Here’s how two quant-style indicators flashed a bullish signal for FIL and NEAR.
In financial markets, the uneven distribution of information comes hand-in-hand with theuneven distribution of economic power. The cryptocurrency market is no exception and oftentimes those with insider knowledge or access to industry-grade data intelligence tools can put their digital assets to work in ways the everyday retail investor could never do.
Still, regular traders can profitably leverage publicly available, market-moving news if they are lucky to get to it before the rest of the pack. Research suggests that certain types of news announcements, such as those related to staking, listings, and partnerships, have the greatest potential to move crypto prices.
Last week, when word got out that two blockchain protocols had forged a partnership, the price of both related tokens soared immediately. Was there a way for main street investors to join the gains fest early?
The power of collaboration
In most cases, high-profile, market-moving partnership announcements feature a crypto protocol or associated asset on one side and an entity that is not represented by a digital token on the other – think an NFT platform partnering with a top sports club. Accordingly, there is usually only one digital asset that stands to benefit from the news.
On Aug. 10, however, something quite unusual transpired. A collaboration between Filecoin and NEAR Protocol, which enabled decentralized applications built on NEAR to integrate Filecoin-based storage, was announced and the development resulted in considerable gains for both assets.
The announcement first appeared on Filecoin’s blog on Aug. 10 at 17:32 UTC. and the news took roughly three hours to reach NEAR’s Twitter account. Most of those who are not in the habit of refreshing Filecoin’s blog at least every hour would have to wait for the announcement to spread through Twitter feeds to learn of the collaboration.
FIL price took off immediately after the first announcement went public (first golden circle in the graph). At the time of the first post, FIL had been changing hands for $65.50 and by the time the second notification landed (second golden circle), the altcoin has already rallied to $69. The next day, it reached $75, making for a peak return of 12%.
NEAR was trading at $2.73 when the news broke and by the time the announcement had reached Twitter, the token had risen to $2.84. Roughly 48 hours after the initial post, NEAR had hit $3.42, which was an overall increase of more than 20%.
Golden circles in the graph represent time points when subscribers of CT Markets Pro, intelligence platform, received automated alerts of potentially price-moving news announcements, known as NewsQuakes™. The first alert came in under a minute from the original post on Filecoin’s blog, giving its recipients a three-hour head start before the news hit the Crypto Twitter.
NewsQuakes™ is an artificial intelligence-driven system that automatically sifts through thousands of websites and social feeds to detect potentially market-moving developments moments after they are publicized by primary sources.
CT Markets Pro users receive an alert at a speed that often beats most other social and media sources where traders normally discover actionable news. In fact, NewsQuakes™ is the same service that writers at Cointelegraph (as well as those at our major competitors) use to track breaking stories to cover.
Capitalizing on the rise of FIL and NEAR required a solid understanding of what synergies can emerge from the two protocols’ collaboration and whether the market will ascribe value to them.
Yet, it was equally important to learn the news quickly and have the time to act on it. While no algorithmic tool can replace sound judgement, NewsQuakes™ can assist with the second part of the equation.