Binance Research Report: XRP is the Best Diversifier
Binance Research has ranked XRP as the best diversifier with a market cap above $3 billion. This is one of the key takeaways from a recent report published by the research branch of Binance exchange on 26th April 2019. The report, which is titled, “Categorizing Cryptoassets: A Return-Driven cluster Analysis,” focuses on the correlation between cryptocurrencies in terms of price.
The research analyzed the top 30 cryptoassets using data for the one-year period between 31st March 2018 and 31st March 2019 from www.coinmarketcap.com. Binance research grouped the cryptoassets into sub-segments using a correlation matrix along with hierarchical clustering.
XRP’s rank as the best diversifier came about as a result of its low correlation to Bitcoin (BTC) and Ether (ETH) in terms of price movements. Conversely, BTC and ETH were found to be the cryptocurrencies with the highest correlation.
Stellar Lumens (XLM), which is considered by some to be a more decentralized version of Ripple’s (XRP) was found to have the highest correlation with XRP.
Binance Lists Cosmos (ATOM) Without Charges
A few hours ago, Binance also announced the listing of the Cosmos (ATOM) cryptocurrency. According to the announcement, trading will open at 4:00 AM (UTC) on 29th April 2019. The listed trading pairs are ATOM/BNB, ATOM/BTC, and ATOM/USDT.
Interestingly, Binance plans to add the new cryptocurrency without charging any listing fees. Changpeng Zhao, the CEO of Binance, revealed on Twitter that the “good tech” of the Cosmos project was the determining factor.
Here is a project that refused to even talk to an exchange about listing (and we have a good relationship with their tech guys), but we list it anyway.
Good tech wins!https://t.co/Zu0uQZuGH6
— CZ Binance (@cz_binance) April 28, 2019
Generally, comments from community members suggest that most members agree that Cosmos (ATOM) is a promising project with good technology. However Twitter user @dukhans doubted the assertion that the Cosmos team made no attempts to get listed on exchanges.
“Are we supposed to believe that ATOM got listed on Bittex, Huobi, Poloniex and now Binance in the same week without talking to exchanges?”
The Cosmos (ATOM) price also reacted positively to the announcement. The price surged by 37% having moved from $3.48 24 on 27th April to $4.77 at the time of writing.
According to the Binance Research report on Cosmos, the project aims to build an ecosystem to facilitate interblockchain communication.
Nexo Co-founder Unperturbed by Tether, Bitfinex Controversy
In a recent interview with Bloomberg, Antoni Trenchev, the co-founder of the blockchain based lending platform, called Nexo, stated that he was not perturbed by the recent negative news surrounding Tether’s USDT stablecoin and cryptocurrency exchange Bitfinex.
The Nexo co-founder was happy about the cryptocurrency market’s reaction to the news. In a comparison with the traditional markets, Trenchev stated that “Bitcoin being down 5% on the day is equivalent to the Dow Jones being flat on the day.”
In Trenchev’s view, the toned down market reaction is due to the availability of alternatives to Tether. Stablecoins such as TrueUSD, USD Coin and Paxos Standard Token serve similar purposes. This lessens the impact of a Tether scandal on the market, according to Trenchev’s assessment.
The above is to be considered opinion and not investment advice in any way, as an unbiased media, no one interferes with the Editorial content of CryptoInsider.com, writers have freedom to choose their own direction, members of Crypto Insider do not participate in trades based on content.
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