Bitcoin and the crypto market are definitely going mainstream this year. The process was started several years ago but it is bearing fruit right now. There is one problem, however. Many people do not trust the industry because of market manipulation.
Unfortunately, manipulation is proved to be real. One of the main controversies of the year so far was that several crypto exchanges were accused of faking their trade volumes with practices such as wash trading, which is what happens when you keep trading with yourself in order to fool investors.
After several criticisms, CoinMarketCap, the largest data aggregator of the industry, has decided to partner up with some exchanges in order to create the Data Accountability and Transparency Alliance (DATA).
The program was focused on enhancing the accountability and the transparency of the participating companies via higher reporting standards. This way, the confidence in the industry could be upgraded in such an important time.
The official press release of CMC stated that the DATA initiative was created in order to increase the transparency of the market while guided by the belief that users should be empowered to make informed decisions and that the projects which are not a part of fraudulent tactics should be able to differentiate themselves from the bad ones.
Another important aspect of the project is to identify which are the gaps in the system and create strategies that will make it more efficient. DATA has a total of 22 companies working together, and they include really huge ones such as Bithumb, OKEx, Huobi and Bitfinex as well as the ones that were cited before.
It is somewhat concerning that some of these companies were called out by the Bitwise report, the one who proved that most Bitcoin trading volume is actually fake. For instance, the report affirmed that OKEx, considered one of the largest exchanges at the time, was made up vastly by fake volume.
Huobi was also targeted by the company, which affirmed that the exchange vowed to clean up on its wash trading practices but its volumes simply did not decrease, which was to be expected. Because of this, there are serious doubts concerning whether these companies are really making an effort or not.
It is important for the future of the crypto market that companies such as these ones are engaged in cleaning up their practices. Only this way the people at the market will be able to move forward and trust the crypto market to live up to its full potential.