Coinscious, a data and trading analytics provider for the cryptocurrency market, is aiming to use AI and deep learning to provide better insight into cryptocurrencies.
Company co-founder and CTO Daniel Im has announced that the company has launched ‘The Coinscious Lab' and a series of experiments using AI and machine learning which will be conducted in the autumn.
The company wants to use AI-driven analysis and prediction to create a more reliable and healthier crypto-currency market.
At present, the crypto-market is characterised by a rapidly changing situation, through factors such as emerging regulation and the impact of unstable bitcoin prices on other currencies, and high incidence of market manipulation. Investor also have to deal with a lack of information, and misinformation; scattered and inconsistent signals; and false and misleading price inflation as a result of pump-and-dump schemes.
Coinscious says it will use AI and machine learning to be able to process large data sets, including financial news more quickly, to distil data into actionable insights.
The Coinscious Lab is intended to be a predictive machine with integrated deep learning, which will use multiple layers to process data inputs and turn them into predictions. Machine learning uses inaccurate or mistaken guesses to refine predictions and become progressively more accurate.
By feeding data collected from different sources into a neural network, Coinscious can model the behaviour of the cryptocurrency market. The solution will also be able to classify different data segments to provide visualizations and model trading bots, and can perform ratings of exchanges and coins, to determine whether a party is a miner, an exchanger, or a project owner.
Ultimately, Coinscious can detect price manipulations and other fraudulent activities to allow individuals to see which currencies and exchanges can be trusted.