Coinmarketcap Makes Acquisition of Hashtag Capital to Enhance ‘True Price’ Crypto Market Data
Because so much of the focus in the crypto world surrounds the current price of various tokens as well as the many transactions that take place, there is great importance placed on the accuracy of data being reported by various platforms.
One of the most popular of these platforms is Coinmarketcap which reports on daily values and figures within the crypto market.
They have now announced that they have made their first acquisition in a bid to provide the true price for cryptocurrencies. This has been discussed in the industry recently as misreported figures could lead to significant losses for traders and investors. The acquisition in question is Hashtag Capital, a startup that develops algorithms to analyze all available points of liquidity and this will enable Coinmarketcap to better report the value of assets.
Previously Coinmarketcap had been an absolute returns crypto trading fund but then began working on ways to create better quality market data which is a part of its fund management services. It was the aspect of quality market data that attracted Coinmarketcap to their business and according to the official release, the Hashtag Capital team will be moving to the Coinmarketcap team once the acquisition is fully completed.
This is not the first move made by Coinmarketcap to provide more accurate and transparent data for users as they previously launched a transparency initiative on May 1, 2019, with a number of cryptocurrency exchanges.
This move saw the creation of the Data Accountability and Transparency Alliance which helps to seek out ways to better crypto data reporting and provide better information to the users of such data. The members of this alliance include Binance, Bittrex, OKEx, Huobi, Liquid, Upbit, KuCoin, HitBTC Gate.io, OceanEx, and Bitfinex.
The alliance mandated that all the exchanges who joined must provide live tracking and order book data at all times or they would be removed from the platform's adjusted volumes calculation.
This was a testament to just how serious the matter of data reporting as Bitwise, a cryptocurrency index fund provider has previously claimed that 95 percent of all bitcoin trading volume that is reported as fake and that the true sports markets for bitcoin only existing about 10 exchanges.
In 2018, a number of arrests were made in South Korea after executives of a particular exchange were found to fake a large percentage of their transaction volume which made the first ever arrest for that purpose.
“We are excited to push the envelope on cryptocurrency pricing at CoinMarketCap, going beyond our traditional volume-weighted average prices to even more sophisticated price algorithms and analyses,” said Brandon Chez, CEO, and founder of CoinMarketCap. “The Hashtag Capital team will be able to add significantly to our data efforts, and drive the next phase of CoinMarketCap in providing data products to the market.”
As the industry is maturing, there is the need for accurate data as much as possible as it damages the industry's credibility if such data is not available and if fake figures are constantly being thrown around in the market. Hopefully, these efforts being made by Coinmarketcap and others will achieve the desired results.