U.S. financial services business Capital One has emerged with a brand-new system to predict crypto market trends using artificial intelligence (AI), contributing to the company’s trading activities.
To safeguard the intellectual resources of the solution outlined to make crypto trades more rooted in high-level data analysis, Capital One has registered a patent application with the United States Patent and Trademark Office (USPTO).
In the application, the company said that its system would implement “a credibility analysis engine configured to determine the credibility of the crypto-related information,” and “an artificial intelligence engine configured to predict a cryptocurrency market trend based on the credibility of the cryptocurrency-related information.”
The created data will be used to power a processor “configured to generate and execute a personalized trading decision” that relies on the calculated crypto market trends.
Capital One acknowledges that cryptocurrencies trade 24/7, unlike traditional markets, suggesting that traders need to make choices at all times during the day and “monitor information from a variety of sources.”
This would include social media channels like Twitter, Reddit, Telegram, Youtube, etc., as well as keep track of “special events such as initial coin offerings (ICOs), airdrops, forks, hacks” and others.
As before-mentioned, “it would be impossible for human traders to track all of the above-mentioned cryptocurrency-related data and respond to that data in real-time,” as well as verify the sourced information’s credibility.
Due to this, “there is a need for a centralized platform that analyzes speculation, news, and other cryptocurrency-related information, as well as provides a recommendation and implements the provided recommendation,” according to the filing.
The 13 page-long application explains the functioning of the system, which will source data to four modules:
- A cryptocurrencies market module that will analyze the current and past prices of cryptocurrencies on various exchanges, trading volumes, order book credibilities, filled orders, etc.;
- A social media module that will track the developments across various platforms, including posts, retweets, comments, influencer opinions, and even the emojis posted by users;
- An event module, tasked with processing information on various news, event announcements, and rumors of upcoming events, among others;
- A cryptocurrency company module, analyzing company websites, white papers, and press releases, and other types of relevant data.
Based on the modules’ input, the system’s processor uses the gathered data to create personalized trading decisions that rely on the predicted crypto market trends and executes them.
Capital One declared that, since the company’s initial public offering in 1994, it has grown to mature into one of the ten largest banks in America and 100 biggest companies in the U.S. as rated by Fortune Magazine.