Pierre-Alexandre Picard is the founder of Predicoin, a data analytics tool for crypto investors. In a conversation with Crypto Insider, he explains the use-cases for their platform and how their tool can give you a leg-up in the crypto market.
What is Predicoin?
Predicoin is a cryptocurrency data analytics platform. It aggregates trending news articles and viral social media posts into an all-in-one data platform, where crypto investors can also analyze content sentiment. Predicoin enables crypto investors to find meaningful content by simplifying their access to trending news articles and viral social media posts.
What indicators does Predicoin measure? How does the Sentscore work?
Predicoin combines 5 different data verticals to generate their SentScore, which reports the general outlook of a coin:
- News: Content from over 100 cryptocurrency websites
- Social conversations: Reddit and Twitter discussions
- Technical analysis: Traditional technical analysis indicators
- Fundamentals: A coin’s strength judged by micro- and macroeconomic factors
- Trends: Short-term popularity and long-term trending characteristics of a coin
What is the most interesting correlation that you’ve discovered so far that will be useful for traders and investors?
News sentiment or social sentiment changes that are preceding price changes.
- ETC 51% attack: ETC developers and the general community were made aware of a possible 51% attack on the ETC network on January 7th, 2019. Before price could react and plunge nearly 20% over the following week, the average SentScore had already dropped due to the numerous negative news articles and social media posts.
- Ripple partnership with PNC: On September 19th, 2018, PNC Bank announced that it planned to use a Ripple service for assisting with its overseas transactions. Predicoin caught the sentiment shift in news, leading the overall SentScore to a near all-time high for XRP at the same time the price was reaching a high for 2H 2018.
- Bitcoin Cash hard fork: During the Bitcoin Cash hard fork on November 15th, 2018, there were an increased number of news articles mentioning BCH. Predicoin detected negative sentiment among this growing volume of news, causing the News Sentiment score to drop indicating bearish movement. This negative sentiment correlated with the price drop amidst the BCH hard fork and overall bear market in mid-November.
Are there any use-cases, or stories you can share about traders/investors that have used Predicoin to their advantage?
Picard responds: “Our clients use Predicoin to identify convergences or divergences between news sentiment, social media sentiment and prices. We regularly have feedback from our clients that use Predicoin to “augment” their due diligence. We have a lot of positive feedback. Last week one of our clients, a company trading stocks and cryptos, told us they recently identified a pattern in our charts and implemented a strategy which proved very successful. Their only regret was not having invested more on this strategy sooner!”
What findings have you been most surprised by in building your product?
“When the sentiment score is going out of its range, it’s usually a strong indicator of a coming price change. Also, our buzz indicator helps to rapidly identify coins that have an unusual social activity. When you log onto Predicoin, you can this way have a clear snapshot of coins that have an activity that could lead to a price change.”
What advice do you have for new investors entering the crypto space?
“Invest what you are ready to lose. Be very critical on what you read or watch, always do your own research. Always have a plan when you make a trade. Watch cryptocurrencies analysts on Youtube and follow people charting on Twitter and Trading View, never stop learning!”
What are people not looking at? In other words, are there any big developments in crypto that isn’t getting deserved attention?
“A lot of things are happening in developing countries, especially in South America or Asia. With hyperinflation and economic instability, new use cases for crypto are starting to accelerate and scale.”
What are you most excited about in 2019?
“The upcoming regulations and the impact of the arrival of new institutional players such as Bakkt and Fidelity crypto custody & trading platform. The GAFA moving forward with blockchain and crypto. Facebook is working on a stable coin for Whatsapp and Google recently announced working on a blockchain explorer and analytics service. This is very exciting and will lead to more adoption!”
Sign up for the free version of Predicoin here: https://predicoin.com/