CoinMarketCap (CMC) to Announce A New Liquidity Ranking System On November 12
Renowned data source for all the trading cryptos, CoinMarketCap, has announced that it will release a new liquidity ranking system on November 12, 2019. In a virtual roundtable that was held on August 27, CoinMarketCap revealed the news. The roundtable dubbed DATA; Data Accountability & Transparency Alliance, brought together various exchanges, as well as projects found in the crypto industry, was started in May 2019.
At the DATA roundtable, CoinMarketCap came up with three topics of presentation to be deliberated by the alliance: utilization of liquidity metrics, own reported data as well as an integrated crypto asset ID database. CMC also stated that a dashboard that will enable own reporting is set to be introduced on Oct. 14, 2019.
According to CMC the plan to utilize liquidity metrics in the ranking of the exchanges came about due to numerous problems associated with wash trading that is widespread as per the volume rankings being used in the firm’s website currently.
According to CMC the use of liquidity may pose some challenges; as a non-numeric, it regularly changes and becomes hard to note as well as report.
Consequently, CMC said that retention of volume metric will require redesigning and this cannot be done easily hence the need for improved rankings and creation of a smooth playing ground.
In regard to own-reporting, CMC suggested that the measure was meant to enhance openness in the market. The company proposed offering badges as gifts to platforms that will divulge various data points. The firm gave examples of badges like KYC, the physical location of the platform’s offices as well as order books that can be seen by other crypto exchanges.
Cointelegraph reports that earlier this year CMC revealed that it would start striking off exchanges from its website for failing to offer compulsory data beginning June 2019.