Crypto Portfolio Launched by EToro
Twitter has been plagued with cryptocurrency promises for the last two years. AltCoins flourish on the platform while XRP Army patrols scour the social media platform for new offerings. There are also countless users like Vitalik who promise an infinite supply of ETH. However, there is a new financial instrument being spread around Twitter. This instrument is called “The Tie-Long Only Crypto Portfolio”, and EToro operates it. TLCP is available through the EToro exchange already, with minimum buy-ins at the $2,000.00 valuation.
EToro partnered with the analytic firm TIE Data to outsource this new cryptocurrency portfolio through twitter. Right now, the analytic firm is scouring hundreds of thousands of benchmarks to calibrate the perfect portfolio based on the tweets of EToro followers. Currently, five different assets are maintained in correlation to this portfolio. Those include EOS, XRP, MIOTA, DASH, ETC.
The Chief Executive Officer for TIE Data Analytics spoke on this partnership. He stated: “Crypto remains an asset class driven by the wisdom of the crowd. Kind of the epicentre of the crypto universe. There’s nothing fundamentally driving the value of crypto. There are no earnings; there are no dividends; there’s no revenue.”
TIE Data Analytics
There aren’t traditional metrics applied to the stock market when it’s being portrayed through a Twitter Crypto Portfolio. The sentiment of investors becomes a significant role in determining the asset value of cryptocurrencies with this Crypto Portfolio. This means that the metrics are listed for the public eye, causing for TIE Data Analysts to create 50 thousand tweets per day in correlation to the algorithm. Ultimately this drives the investor’s sentiment, the price of cryptocurrency assets and the daily drive of the market. This method is engaged to ask as an invisible glue for the market, providing a specific narrative for traders when reviewing the thousands of tweets made daily.
Before this partnership with the EToro Digital Exchange, the TIE Data Analytics software was available only to hedge funds and private clients connected to those HF Managers. Their software always enabled clients to access social marketing analytics for Twitter, which allowed the data streams to be more consistent. Luckily, a shift in regulation has enabled for the analytic firm to begin providing their services in the blockchain exchange space. Any person that holds an account with eToro has the capabilities to access these data streams going forward.
Unnoticed to the entire industry, the two companies have been working with each other for two years, testing this software across secret portfolios that never went live. They began supplying EToro with the basics of their platform in a secretive manner back in 2017. However, since their portfolios never went live, these actions weren’t illegal. It appears that TIE Data Analytics and EToro both anticipated the shift in regulation.
The Managing Director for EToro US, Guy Hirsch, spoke on hedge funds. He stated: “It brings strategies and investment capabilities that have been reserved to crypto hedge funds up until this point to the average retail investor.”
The Tie-Long, Only Crypto Portfolio, has been updated thoroughly. Today there are thirteen different coins managed in correlation to this portfolio and the EToro exchange. Those include DASH, BTC, ETH, IOTA, XRP, BCH, ETC, NEO, EOS, LTC, XLM, ADA and ZEC. There hasn’t been any word if additional pairings will be added in the future. One of the problematic aspects regarding this portfolio is the challenge of filtering the fake content from the genuine contest on Twitter. A large portion of activity on Twitter is considered fraudulent behaviour prompted by Bot Accounts. The task of going through the original and fake content is daunting for Tie Data Analytics. This task includes squashing bots regularly and consistently debating on if the 50 thousand tweets made daily will create positive or negative sentiment from the cryptocurrency market.
TIE Data Analytics stated: “We’re eliminating about 90% of tweets because we think they’re coming from bots or people trying to manipulate the market. We have to identify and assess the relevance of each tweet. We know there are a bunch of XRP shills pushing out positive tweets. So we’ll have to note how much more positive or negative conversations on XRP today versus the last seven days to account for that.”
Taking on this task is more challenging than most would anticipate. Tie Data Analytics noted during their public statement that there are eighty overlapping keywords between the crypto market and other industries operating on Twitter. This means that some Tweets cannot be deleted, but instead blacklisted. This ultimately creates confusion for traders reviewing the portfolio, who can’t decipher is things like EOS pertain to the token or blockchain. However, once those problems have been solved, the true versatility of this portfolio can be approached. It’s one of the critical factors driving eToro and Tie Data Analytics to finish this project quickly.
The Long Haul
It’s easy to tell that this has been an emotional rollercoaster ride for Tie Data Analytics and EToro. There has been positives and negatives to the Tie-Long Only Cryptocurrency Portfolio. One of these emotional rides occurred this year, where a potential 410% increase in popularity could have been seen in February. However, it’s better later than never, and many are speculating that this portfolio is in it for the long haul. One of these individuals is Stuart Colianni, an individual who is studying with Georgia Tech under the Machine Learning program. He stated: “While the concept is excellent and probably fertile ground for pursuing new investment strategies, people just have to be wary of the amount of risk that they’re potentially exposed to.”
The Tie Data Analytics Firm’s CEO made one final statement. He said: so your net exposure to the market is zero. We hope that this will give people on the fence about crypto a path to enter this asset class, as opposed to trying to figure out for themselves when to sell and when to buy.”