Apart from all the positive reviews crypto industry It is worth focusing on some aspects that hinder its development and can very adversely affect the entire crypto market. We are not going to criticize crypt as luddite, which unleash its anger on the machines, which gradually drove people out of the production chain. We want to draw attention to a completely different aspect of the crypto market, which is often overlooked by leading experts in this field, and which, deservedly, should be put on the agenda. Honestly speaking, everything that has happened so far on the cryptocurrency market is only the beginning stage of a large-scale system that should rightfully take its place in the economy both at the global and regional levels. The next stage in the development of this industry is precisely the transition to the macro level and the use of cryptocurrencies for settlements at all levels of interaction, from personal to corporations and states.
Decentralization leads to the division of the market into separate centers of speculation in accordance with the turnover of certain assets. What is the problem in this case? The lack of uniform rules of regulation and guidelines for all subjects leads to high volatility of the crypto market and instability of the cryptoactive assets themselves. When working with small amounts of cryptocurrency, the price difference within a few percent does not have a practical impact on the subject of the transaction. But if we are talking about the use of cryptoactive assets as a means of settlement between the institutions, the “imbalance” of prices at different sites may entail considerable losses. Instability and the lack of specific objective benchmarks for maintaining their own accounting of funds in the cryptocurrency equivalent does not contribute to the entry of large players into the market.
The modern fiat market is more stable in relation to the market of cryptoactive assets. This is ensured mainly by operating in classical markets such regulators as the European Central Bank, which among other things also act as a “quotation machine” for other market participants. Every business day, the ECB issues a new exchange rate (Fix Quote) by recalculating the quotes of currency pairs. For this purpose, an algorithm for calculating the weighted average rate is used, taking into account the daily volume and the price of trading at the beginning of the trading session, the end of the session, and intermediate values throughout the day.
The cryptocurrency market at this stage does not have such regulators and, accordingly, does not have the tools that would allow participants of the crypto market to use it as a guideline for real accounting of their own assets. At the moment, the owner of the asset uses the price that one or another cryptocurrency platform provides. This approach leads to the emergence of large "distortions" of exchange rates, high market volatility, which is an unacceptable condition for entry of large players into the market.
Provided that the cryptocurrency market is committed to institutionalization, a tool that stabilizes the market and allows major players to conduct their own audit reports and mutual settlements with other market participants in cryptocurrencies is simply necessary.
That is why the professional cryptocurrency exchange KYRREX uses its own algorithm for the formation of cryptocurrency quotes presented at the platform. Its use implies daily recalculation of the cross-rate of assets, taking into account the data of the most popular exchanges on the daily volume and prices of trades, which cover 80% of the turnover of assets in the market. In this case, KYRREX uses the algorithm for eliminating the “pumping” of the trading volume on each individual exchange. Those. in the formula for calculating the rate will only participate data of the real turnover of assets in the market. That is in the formula for calculating the rate, only data from the real turnover of assets in the market will participate.
The mechanism for calculating cryptocurrency rates will allow bidders to use objective quotes provided by the KYRREX platform, which are always relevant to the current state of the market.