Coinigy, the Milwaukee-based cryptocurrency trading front-end and data service, announced an agreement Tuesday in which Merkle Data would provide its three cryptocurrency indexes to Coinigy’s customers. Merkle Data provides analytics and risk solutions to crypto institutions in part by analyzing the publicly available data that are a hallmark of the blockchain economy.
Coinigy offers its customers a trading interface that is connected to 15 different cryptocurrency platforms. Customers can use the Coinigy interface to access their own accounts at the cryptocurrency platforms, providing what Derek Urben, the Coinigy CFO and director of business development, calls “remote control of their accounts.” Urben notes that many cryptocurrency traders have positions in a variety of currencies on many different trading platforms, and Coinigy users can manage them all from a single platform.
Coinigy also offers its customers real time market data from more than 40 cryptocurrency platforms. Coinigy says it is the only front end that combines trading and data connections. According to Urben, the combination makes the data more readily actionable or usable in algorithm-based trading. Trading access and data subscriptions to Coinigy services can be purchased separately.
Merkle Data collects blockchain data and builds indexes that track blockchain activity. Covering major marketplaces like Binance, OKEx and Gemini, MDX tracks deposits onto crypto platforms, from cold wallets into hot wallets, for example. Such cryptocurrency movements onto exchanges are thought to indicate market activity. MVL tracks on-chain volumes and trading velocity. Merkle Data’s Network Metrics index tracks blockchain statistics including difficulty and block sizes as well as mining data.
Customers of Coinigy’s premium data feed service will have access to the MDX and MVL, while Network Metrics will be provided on the Coinigy platform. While enhancing Coinigy’s data products, the relationship will also enhance Merkle Data’s distribution by offering services to Coinigy’s tens of thousands of users.
Urben professes that Coinigy’s services are offered agnostically. He also said that Coinigy, taking no customer funds for trading, is itself neither a broker nor an exchange.
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Jim Kharouf spoke with Derek Urben in June. His article for John Lothian News about Coinigy can be found here.
Merkle Data takes its name from “Merkle tree,” which is the cryptographic method that lets the computer nodes on a blockchain verify an individual record without comparing the other versions of the database. It was patented by Ralph Merkle in 1979.