❓| Problem 1: Information reliability in the crypto market is a problem

The investment of capital in cryptocurrencies is now a global trend. A report published by Crypto.com in 2024 revealed that approximately 580 million people are investing in cryptocurrencies. This figure represents a larger number of investors than the total population of the United States.

As the crypto investment market continues to expand, investors are becoming more sophisticated, and there is a growing demand for investment information platforms. The era of investing based on a few selected options has come to an end, and a new approach based on quantitative and qualitative data is now being adopted by many investors.

In contrast to traditional assets such as stocks, investing based on statistics has become an essential method for reducing risk and increasing ROI in the cryptocurrency market, where real-time asset movement information is disclosed on the blockchain. There has been a significant increase in demand for crypto market data from a range of stakeholders, including retail investors, institutional investors, and coin issuers.

However, despite the cryptocurrency market being based on blockchain technology, which is generally considered to be the most transparent, there are still a number of limitations when it comes to using it as a basis for investment. The most significant challenge is the lack of reliability.

For instance, when on-chain indicators indicate a significant inflow of tokens into an exchange wallet from an external wallet, it is not possible to ascertain whether these tokens have been sold once they are in the exchange wallet, or if they are simply being held. Furthermore, it is not possible to determine whether this inflow is the result of a genuine sale or if it is the result of a deliberate attempt to create an atmosphere of fear or euphoria for the benefit of a third party.

Furthermore, as only the addresses and transactions of wallets are publicly available on-chain, and the identity of each wallet's owner is unknown, it is not uncommon for on-chain metrics and wallet activity to be manipulated or exaggerated by a small number of people. There are clear limitations to making investment decisions based on on-chain information.

It should be noted, however, that there are also significant limitations to making investment decisions based on off-chain information. The lack of clarity regarding the source of off-chain information, coupled with a dearth of supporting evidence, renders it often unreliable.

In order to obtain meaningful information in the cryptocurrency market, it is necessary to have the expertise to collect a significant amount of data from both on-chain and off-chain sources, and to select, analyse, and process only the information that has utility value. However, in the crypto market, there are numerous investment information platforms that focus on specific areas. However, there is a lack of comprehensive platforms that can collect, analyse and process data across on-chain and off-chain.