Crypto Pricing Leader CoinMarketCap to Add New Data to its Site to Fight Market Manipulation
CoinMarketCap, the recognized aggregator of cryptocurrency market data shared information related to inaccuracies that were displayed on its website. The site explained that the concerns related to these inaccuracies are valid and that they will be adding more information to the website to help users make better decisions.
The website is working in order to improve the data provided on its site to help users make better decisions. CoinMarketCap is one of the world’s top 500 most visited sites. The aggregator is used for investors to gather information about prices, volumes on exchanges and rankings. However, trading volumes related to crypto exchanges have been questioned.
According to Bitwise, 95 percent of Bitcoin trading volume on exchanges listed in CoinMarketCap is fake. Thus, this situation creates a mistaken impression of the size and nature of the Bitcoin market.
Bitwise aims at having the first Bitcoin exchange traded fund (ETF) approved by the U.S. Securities and Exchange Commission (SEC). The firm decided to file this research report with the U.S. SEC on March 20.
CoinMarketCap is an important player in the industry. Indeed, when the site decided to remove South Korean exchanges from the price calculations back in 2018, most of the virtual currencies experienced a drop in price. Now, after this report released by Bitwise, CoinMarketCap plans to offer a set of new tools to bring more transparency to trading, reported Bloomberg on March 25.
According to Carylyne Chan, global head of marketing at CoinMarketCap, they will be including liquidity measures such as hot and cold wallet balances and traffic data.
On the matter, Chan commented:
“For instance, if an 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 phylosophy 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 2018, the website has also decided to eliminate volume requirements for exchanges to be listed. The firm has also decided to add 7-day and 30-day volume.