New IBM Partnership Uses AI to Rank Top Cryptocurrencies and ICOs
IBM announced a partnership with artificial intelligence company WatermelonBlock to create a market sentiment ranking system for the top cryptocurrencies and ICOs, designed to help crypto investors by providing real-time global insight and analysis.
Data scientists will work with IBM’s Watson AI team to develop, test and monitor cryptocurrencies and ICOs, creating a percentage and index score. The score will be derived by reading and categorizing big data sets across the web, targeting social influence and reach.
Cryptocurrency price action is heavily correlated with Bitcoin price swings and market sentiment. Social media encompasses trends, thoughts and opinions across a range of platforms including Twitter, Reddit, Facebook, Snapchat and many other forums. WatermelonBlock’s technology is predicated on the idea that speculative markets are driven by these online influences and that they can be harnessed by AI for detailed contextual analysis.
Cryptocurrency ratings systems are becoming more mainstream. China recently introduced a ranking of the top 30 cryptocurrencies. It published its second official cryptocurrency ratings index since the ratings began in May. EOS topped the list. Unlike the IBM-WatermelonBlock system, China’s system relies on the accumulation of a government score for innovation, technology and application.
Cryptometrics is another tool that allows investors and traders to review the raw number of Reddit, Twitter and Telegram participants for each major coin in order to gauge the vibrancy of online crypto communities.
IBM’s partnership puts the tech giant knee deep in the development, advancement and integration of cryptocurrency and its underlying blockchain technology as mainstream innovations. Last month it announced a collaboration with Veridium. Veridium’s digital asset, using IBM blockchain technology, aims to create more transparency in carbon credit accounting and offsetting. The token will be traded on the Stellar network.
IBM’s general manager of blockchain, Marie Wieck, has detailed how the widespread use of blockchain would have a $3.1 trillion-impact on the global economy.
The iOS and Android release of the premium version of the WatermelonBlock insights app is expected in the fourth quarter of 2018.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin or cryptocurrency. Your transfers and trades are at your own risk. Any losses you may incur are your responsibility. Please note that The Daily Hodl participates in affiliate marketing.