CoinMarketCap Aims At Improving Blockchain and Crypto Data With Enhanced Information
CoinMarkeCap is one of the most popular crypto-related sites in the world and it provides information about digital assets, crypto exchanges and more. However, during the last few weeks, there were several reports pointing at the trading volume reported by exchanges. Some of these platforms were presenting trading volumes that were not real. Now, CoinMarketCap wants to change this by improving the information it provides about digital assets and crypto exchanges.
CoinMarketCap Wants To Improve Data
After six years of being operative, CoinMarketCap has celebrated its new anniversary. The site provides information about the market capitalization of over 2,100 digital currencies in the space, including Bitcoin (BTC) and many others.
The company is going to be working in order to create a more rigorous philosophy in order to provide more clear and precise data. There are many investors and enthusiasts that rely on the data provided by this site to perform their investments and place their funds in the cryptocurrency market.
A few weeks ago, the company Bitwise Asset Management informed that 95% of the exchanges listed on CoinMarketCap showed faked trading volumes. This is a technique that some exchanges use in order to attract a larger number of users thinking that there is greater liquidity.
According to a recent report released by Bloomberg, CoinMarketCap is going to be creating a more rigorous philosophy in order to provide more accurate data about exchanges and virtual currencies. The new project is known as CoinMarketCap Data Accountability & Transparency Alliance (DATA).
— Carylyne Chan (@carylyne) April 25, 2019
Carylyne Chan, the global head of marketing at CoinMarkeCap, commented about this:
“For instance, if exchange with low traffic has $300M volume and just 5 BTC in its wallet, users will be able to draw their own conclusions without the need for us to make arbitrary judgment calls on what is “good” or “bad.” We want to state that our philosophy is to provide as much information as possible to our users so that they can form their own conclusions and interpretations — and not introduce our own bias into that mix.”
Back in July, the firm announced that it removed volume requirements for exchanges to be listed and it has also introduced 7-day and 30-day volume to help users understand how these platforms behaved in the last few weeks and months.
The data provider is also launching a new blockchain explorer in order to make it easier and more intuitive for newcomers to interact with the data. Furthermore, the firm wants to provide enhanced data for individuals to be able to have an improved user experience.
CoinMarketCap has received support from Changpeng Zhao, the CEO of Binance, one of the largest cryptocurrency exchanges in the market. He wrote on Twitter that doing ranking as CoinMarketCap does is much harder than what people think.
As Zhao explained, exchanges fake their volumes because they receive several benefits from it. It is possible for them to get new users by being displayed in the highest traffic website in our space.
The platform has recently decided to exclude the BTCUSD price of Bitfinex from its market capitalization calculation. This is after Thomas Lee said that Bitfinex IEO could harm Bitcoin and other digital assets in the short term. Moreover, Bitfinex and Tether (USDT) are experiencing some controversies regarding their funds.