Sunday, November 22, 2020

Trades not at maximum entropy


Solidus Labs Believes Its Crypto Surveillance Tool Can Help Launch a Bitcoin ETF

Market manipulation is one of the main concerns the U.S. Securities and Exchange Commission (SEC) has cited in rejecting a number of bitcoin exchange-traded fund (ETF) applications. Solidus Labs, a technology firm, believes it has developed a technical surveillance solution to address this issue.

Solidus announced Wednesday it was rolling out a market surveillance tool to monitor crypto exchange transaction data and flag potential manipulation across different platforms, as part of an effort to address ongoing regulatory concerns about crypto markets.

“These are issues that have been largely resolved in traditional markets through market surveillance systems [that] were designed for traditional markets,” said Solidus Labs Chief Operating Officer Chen Arad.

Trades that utilize too many transactions, or form loops.  Throws the trading pit distribution into skew. Or trades that suddenly jam the miner queues.  Solidus also makes a great Oracle, an improvement on current generation. They can report mean, variance and skew for any pit that is observable in round robin. That is equivalent to computing option interest charges.

Their Btc ETF can price the cost to center the trading pits. The liquidity needed to restore it to maximum entropy.

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