While doing research on cryptocurrencies, I sometimes bump into great tools to help me find answers to questions I have. Until today I never came across tools that helped me analyse the sentiment around a certain coin or tell me a bit more about which coins are more hyped than others. Those would save me a lot of time and probably would help me making better decisions about when to buy or sell!
Sentiment Analysis
A few years ago I came into contact with sentiment analytics tools. Back then, the use case was understanding customers better based on analyses of the unstructured customer feedback (email, phone calls, social media, review sites etc) and create automatic feedback loops to the right people within the company. In the end leading to better customer experiences and avoiding customer contacts as a result.
The power of sentiment analysis became very clear to me and in the last few years I have been thinking about its applicability in the crypto space. Today I found CoinGossip and I want to share with you some visuals and thoughts.
Gossip Summary
The pie chart above displays the gossip summary, basically telling you which coins people are mostly talk about on your selected channel (Reddit or 4Chan are currently supported). You can see that Ripple, IOTA and Litecoin are the most posted about coins in the last 24 hours. It does not say whether that is in a positive or a negative way though, that is only visible in the table below.
Popularity and sentiment of cryptocurrencies
In the table above you see some of the bigger coins with their sentiment and their ‘gossip’ based on the last 7 days on Reddit posts (you can also select discussions or 4chan posts). For instance, we can see that Nano, Litecoin and Stellar have a positive sentiment and IOTA, Bitcoin Cash and Bitconnect have a negative sentiment. It does not give you any extra details (yet), but it does give you a general impression.
Interesting stuff huh? I'm still playing with the website and trying to understand the underlying logic of the metrics, but I really like it at least so far :-)
I believe that in a two years we’ll see over a hundred websites and services offered like CoinGossip. Probably they will be far more advanced as well compared to the now still very young CoinGossip. Personally I am very excited about this and cannot wait to include it into my standard set of tools to analyse coins and base my buy/sell decisions on.
What are your thoughts on sentiment analysis? Do you think it is a valuable addition to incorporate in your coin research?
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Disclaimer: I am not a financial advisor, trader or developer. I am just a blockchain & cryptocurrencies enthusiast. Make sure you do your own research, draw your own conclusions and do not invest any money that you cannot afford to lose.
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CoinGossip has the potential of affecting the market. Whether negatively or positively is left for future to tell.
In the midst of all this bustle in the crypto world, a tool like this priceless.
I have few questions though.
#1. It is possible that robots can spot whenever a particular coin is being mentioned on the net. Agreed. Now, where does the judgment on what is being said about the coin comes from? From robots or people??
If the results of sentiments analysis are not compromised, then CoinGossip is an indispensable tool for investors.
Cheers 🍻 @cryptotem
Great question @fada.emma!
Currently I am not sure how this works at CoinGossip. That is exactly the biggest challenge for current sentiment analytics companies like Clarabridge, Medallia and Cambridge Semantics, to algorithmically determine through machine learning as accurately as possible the sentiment relative to the rest. So it will be the same challenge for websites like CoinGossip.
As far I know, the machine learning capability is still at its infancy stage and a lot of manual stuff needs to be done. Think about classifying all words on a negative-positive scale given certain context (other words, subjects, country, language etc.).
Hopefully we'll see some relatively accurate tools in a year or two!
Boss, truly the learning capability of the machines is possibly in its babyhood which eventually places a 'question mark' on the integrity and authenticity of the manual forces behind the scenes.
Meanwhile, I join you in hoping for a better future 🔮.
Cheers @cryptotem
In this market, which is still pretty immature and full of emotionally driven buyers/sellers, a tool like this is super interesting to me. We saw the consequences of that sentiment when the crash happened. At the first sign of a bearish trend, the market got extremely nervous and the sentiment turned around 180° in a heartbeat. Sites like this probably could've seen that change in sentiment happen and we could've acted accordingly. For sure something i'll keep my eye on. Thanks for sharing!
Definitely @tuwore!
I think the website is quite young and I would like to know more about how the sentiment is determined. Also I would prefer to see sentiment on a scale from 1-7 or something rather than positive vs. negative. Let's hope this is all in progress ;-)
Always believed that sentiment was much more important/powerfull in the cryptoworld then TA.
Glad that you pointed me to a site which partly proves my believe.
This believe poped up during all the FUD of the beginning in the year but still some TA posts promised the moon for some coins.
Thx
Glad I can deliver some value to you :-)
The website is still quite young though and based on some playing around, there are still a lot of outliers and weird things. But hey, we need to start somewhere right?
I really appreciate the effort of the developer behind the project!
Yeah really nice question asked by @fada.emma, it is imperative to know who computes this statistics. It will be good if machines can be used to give such statistics with utmost precision just like robots in forex trading.
Sadly, machines can be compromised too, innit?
What we need is a system devoid of flaws, right?
So, if one who is to rate other people's sentiments, does that with 'sentiments', then the aim is defeated and investors would be misguided.
Let's hope on hope that all things have been put in place (addressed) to ensure the delivery of quality service to users of the platform (CoinGossip).
Thanks again @cryptotem for sharing this.
Thanks @chicsman for your helpful input.
Well said
I wonder what the future expects for the currency. Maybe soon people will turn into a digital code? I subscribed to your blog. Tell me when the sea becomes digital. It is a pity that photo blogs are not interesting to anyone, I do it)
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