Tyler and Cameron Winklevoss are two names that are well known in the crypto world. In 2014, Winklevoss Capital, their investment firm, established Winkdex. Winkdex was created to serve as a Bitcoin price monitoring tool which would be more accurate than all other market options.
The Winkdex price monitoring platform is currently used by plenty of financial institutions, including Bloomberg, when they have to establish the real price of Bitcoin.
Winkdex is a New York-based platform released in October 2014, attracting a significant amount of media coverage. Since it was created, Winkdex has successfully made a name for itself, being hailed as one of the most accurate Bitcoin price indexes which crypto investors can use.
How The Winkdex Works
The Winkdex price index tool extracts data from multiple exchanges, including Bitfinex, CampBX, and LocalBitcoins. The gathered data is then used into patented mathematical formulas. These algorithms take into consideration a wide range of criteria to decide the true weighted price of Bitcoin.
The Winkdex uses a five-step process to determine its prices, making sure that they are of the highest accuracy.
- The first step involves gathering trade data from all the contributing exchanges. The information is then timestamped and stored into a grid. The grid contains the source, time, price, quantity, and its percentage of total trade volume. In addition, the mathematical protocol searches for flawed data points and removes them from the equation.
- The second step in the Winkdex equation is sorting the trades according to price from lowest to highest. This step is of vital importance for the equation because it enables the platform to ignore the data that is unstable. Both low and high percentile trades can lead to irregularities in the employed mathematical formula.
- The third step is to find the trades with prices that exist within the cutoff threshold. This action involves excluding exchange data prices that are under the top 95 percent in the equation. This step excludes the top and bottom five percent of all trades from the calculations. By doing this, Winkdex can generate a more stable price calculation.
- The fourth step takes in the removed top and bottom percentages. When these removed data points don’t total to exactly 5 percent, the Winkdex will divide the data to attain the looked-for fifth percentile required by the protocol.
- The data collected is then sorted again and put into a table that features the weights of the trades. The weight of a trade is a calculation that considers the proportional relevance of a trade. This data will take in any split trade information from the previous steps. The data is calculated by dividing the sum of volumes and to the sum of quantities.
The two entrepreneurs decided it would be a beneficial decision to make available their platform to mobile users after recognizing the need for a more user-friendly methodology. This thinking led to the launch of the Winkdex iOS and Android apps.
The platform can be accessed and used directly from your mobile device that runs on either iPhone or Android systems.
The crypto community enjoys an efficient and convenient investment monitoring tool. Many crypto investors and traders regard mobile incorporation as a vital step towards a mass cryptocurrency adoption. By catering to this market segment, the Winkdex tool has managed to secure a significant percentage of the market share.
The Winkdex platform also launched a widget version of itself in 2015. Widgets enable users to quickly monitor the price index without having to open an app. Installing widgets is a task that does not require any effort, being a popular alternative to downloading the entire Winkdex app.
The Winkdex also offers the same functionality for Ethereum (ETH). Ethereum has maintained its position among the top cryptocurrencies in terms of market capitalization for a long time. The mathematical equation which is used to determine Bitcoin’s price is also applied to calculate that of Ethereum.
The Winklevoss twins are two prominent figures in the cryptosphere and have great influence on the market. The brothers will keep on pushing for Bitcoin adoption, and many in the community view their involvement as vital in getting Bitcoin ETFs licensed.