- CryptoCompare is now providing more accurate information about exchanges
- The crypto industry has been affected by fake volumes in the last months
The cryptocurrency data provider CryptoCompare announced that it launched a new exchange ranking in order to offer a solution to the problems that the industry is currently facing. A few months ago, Bitwise Asset Management released a report in which it informed that 95% of the trading volume on crypto platforms was fake.
CryptoCompare Launches New Exchange Rankings
In order to have better information about virtual currencies and exchanges operating in the market, CryptoCompare decided to create a new ranking for them. As mentioned before, there have been several reports in which they inform that trading volume in exchange platforms is fake. In order to solve this issue, CryptoCompare wants to offer better measurements for the industry.
The new system created by CryptoCompare ranks exchanges according to their due diligence, market trade quality, and also market order book quality. CryptoCompare has decided to release a list of ten exchanges that rank well in the new system.
There are other parameters to take into account as well, such as geography, legal assessment, investment, team, data provision, trade surveillance and finally market quality. Each of these components has its three or four sub-criteria. After gathering all the information, CryptoCompare will end up with grades ranging from AA to F.
As per the new report, Coinbase has a AA rating and a total score of 60.3 points. Other exchanges with AA grade include Poloniex, Bitstamp, bitFlyer, Liquid, and itBit. In the geography category, Bitstamp reached the highest position with 9.16 points while Liquid scored 6.12 points. Binance has also scored the same as Liquid.
Binance obtained this low ranking in this category because the exchange is always trying to avoid regulatory issues in different countries and jurisdictions. At the same time, Binance received a low 1.1 in the Legal Assessment category, looking at MSB registration, insurance, and regulatory relationship. bitFlyer received the best score with 10 points.
There are several cryptocurrency exchanges that are located among those with the best performance in CoinMarketCap that do not appear in this report released by CryptoCompare.