Cryptocurrency is sometimes referred to as the “Wild West” of finance. The market is largely unregulated, and misinformation can be rife. The booms and busts of altcoins can hinge on a single tweet, as seen with Elon Musk and Bitcoin.
Santiment was born out of the need to promote trust and transparency through accurate data in the crypto market. The decentralized platform for market data and analysis aims to eliminate the “information asymmetry” in crypto. Think of Santiment as the Bloomberg of cryptocurrency. Their datafeed is called “Sanbase,” and they have a coin, the “SAN Token.” So, what is Santiment, and how does Santiment trading work?
Founded in 2016, Santiment quickly became the go-to portal for trustworthy information on cryptocurrencies. The cryptocurrency data feed provides an objective overview and detailed analysis of market data and altcoin activity. Seasoned investors and beginner traders alike rely on Santiment to access reliable information and make informed trading decisions.
Approximately 2.5 quintillions of computer data are generated every day. On that calculation, every single person creates 1.7MB of data a second. The internet is going wild for cryptocurrency. There is a tidal wave of new information – coin predictions, research reports, community activity – released on the internet daily, not all of it accurate. The goal of Santiment is to sift through the computed data with the help of researchers and developers to glean the truth. In effect, the Santiment project is a joint effort by machines and humans.
Santiment is a fusion of information hubs for traders, investors, and cryptocurrency journalists. You can subscribe to the Santiment content screens, a kind of newsletter of up-to-date information on the major coins and ICOs. Santiment is a feature-rich product, but here are some of the favorite features of this platform:
Sanbase: A crowdsourced database for over 1500 crypto assets. It is like an upgraded version of CoinMarketCap. The information is overseen for accuracy by the Santiment team of industry experts. Sanbase visualizes on-chain information on all the major coins and is a favorite tool of investors to monitor their trades. “Santrends” uses crowd psychology to predict market movements, and “Emerging Trends” finds the ten words with the highest number of mentions in crypto social media.
Sansheets: A plugin for Google spreadsheets. Sansheets let you add cryptocurrency data (prices, volume data, and social trends) to your Google spreadsheets. Traders use Sansheets for backtesting new strategies and building models using updated market information. The plugin compiles over four terabytes of on-chain data, including mining metrics, token circulation, and transactions. The social data includes over 200 gigabytes from social forums (Twitter, Reddit, Telegram) and data from private trader chats. Not to mention the data from financial projects (exchange wallets, market caps, price, and volume.)
SanAPI: Santiment calls its SanAPI “the most comprehensive crypto API on the market.” API stands for “Application Programming Interface,” and in cryptocurrency, it lets you open and close trades and receives data in real-time through an exchange (without going through a person.) Crypto traders and investors can use the SanAPI data to easily access data and blockchain information unavailable anywhere else. 1
As a way of recognizing and compensating the human effort in their project, Santiment recently launched a rewards program: “Santiment Wallet Hunters.” The idea is to encourage crowdsourced market research and reward the community effort behind Santiment. The program allows members to become either “Hunters” or “Sheriffs.”
Hunters: Santiment calls these the “worker bees” of the system. Santiment hunters can take on market research tasks (accepting existing tasks or proposing their own.)
Sheriffs: For quality control, the role of Santiment Sheriffs is to vet proposals. Sheriffs have voting power over the proposed tasks. Becoming a San Sheriff requires using the platform’s inbuilt cryptocurrency coin, the “SAN Token.” You need to invest at least 50 SAN to earn voting power.
What’s next for Santiment?
Many of the most extensive news networks, including ABC or BBC news, actually get much of their information from news organizations such as Reuters and Bloomberg. These organizations pride themselves on getting the word first and fast. Their news is then copied, with different spins added at every step of the way. Santiment wants to be the first point of information for the cryptocurrency markets. There are currently many cryptocurrency news outlets, but most stories are recirculated past news. “XRP’s price rose by X amount” or “Elon Musk invested in X cryptocurrency,” for example. When we do read price predictions, they very quickly go out of date. You will generally have to search all news outlets and blogs before finding the specific coin you are interested in, and you will be lucky if it is the same day. Perhaps that’s why Reddit has become such a popular share of information (and misinformation).
Santiment, therefore, has found a gap in the market which certainly needs to be filled. It was founded in 2016 so now we can start to get a sense of whether they have capitalized on this opportunity. One way to track their past progress (and also indicate their prospects) is to look at the price charts for their token (SAN). Currently, their price is similar to what it began as, hovering around $0.18. It’s only shifted a couple of cents, although that doesn’t tell the whole story. In 2018, it rocketed to over $6, along with the bull run across the cryptocurrency markets at the time. The price would imply that Santiment has made little progress, but its prices are hugely influenced by the market behavior, most notably Bitcoin.
Price isn’t everything, although it is worth noting that most price prediction websites are forecasting price increases for Santiment over the coming years. If popularity is anything to go on (and it is!), Santiment is doing well. They have grown their user base over the years, becoming a well-known name in cryptocurrency. The company’s revenue is currently around $8 million per year, and they employ about 30 people. This is proof their business model is working, and the market values its contribution. Santiment does have competition in the news space, but they all work in slightly different ways. Cindicator, for example, is attempting to produce price forecasts based on crowd sentiment. Despite having little price change, Santiment’s prospects look good. It has become a well-known and popular news service. It is achieving reasonable amounts of revenue, and it can afford to employ a lot of staff. Most forecasts project Santiment’s price increasing in the coming years, and they have no direct competition.
If you want to take the next step and find out how to trade Santiment, one way is to keep things easy and buy Santiment tokens outright. You will need to pay the current cost for SAN, and if the prices rise, you will make a profit and, if they fall, you will make a loss. Some trading platforms will also give you the choice of making derivative trades. These include hedging bets, such as options and futures, as well as CFDs (“contract for differences”) which allow you to leverage more money through your broker to increase your potential profits. The brokerage platform you choose can also make a big difference to your trading career.
At our trading platform, TradeOr, we can offer a wide market range within the cryptocurrency and stock market, commodities, and forex. We can offer a choice of trading options (including the above). You will have access to all our market indicators to help you make the right choice with 0% commissions.
As with stocks, the success of the company is inextricably linked to its token. While most tokens and coins on the cryptocurrency market are either a form of currency, an exchange, or innovative use of blockchain technology, Santiment aims to become the number one news source for investors. Its value in the marketplace will, therefore, be determined by three main factors:
- A cryptocurrency’s need to remain popular;
- Santiment has to provide accurate, valuable, and timely information;
- They need to do it better than anyone else.
For the time being, it seems Santiment is achieving all three of these, and forecasters are generally bullish about Santiment’s prospects. If you’re interested in trading Santiment, TradeOr is the ideal online trading platform and offers various trading options.