New CoinMarketCap Transparency Initiative Places 70% Of Crypto Exchanges In Compliance To Start
The crypto world was (somewhat) shocked when the Bitwise report affirmed that over 90% of all Bitcoin trading volume was fake. Such a high number of companies failing to provide accurate data on the market was deemed as a pretty bad and CoinMarketCap had to do something about it, as its credibility was in check.
Now, the company affirmed that at least 70% of the exchanges listed on its platform have complied with its transparency-boosting standards. They are a part of the Data Accountability & Transparency Alliance (DATA) initiative, which was created in order to turn the crypto world into a more trustworthy environment.
The information from the company will now include live trading and order book data as well as the data that was originally available. This way, people will have more unbiased information in order to check the volumes and determine whether they believe in it or not.
Carylyne Chan, the global head of marketing at CoinMarketCap, affirmed that the company is ready to provide clearer guidelines for the companies that want to be listed on the platform. They want to have more information about them, not less, as they often affirmed, so the main idea is to improve the process.
All the exchanges that were listed on the company’s site were given a total of 45 days in order to submit the information. A total of 70% of them actually did and 30% failed to do it. This was considered a very high support for the DATA initiative, according to Chan.
She affirmed that the effort will help the company in order to make more meaningful analysis about the market and that this will give more information to the users, which will end up being empowered by what happens, as they will be able to make their research much more easily than they would if they had to use other sources.
30% Of The Exchanges Will Be Listed Below The Ones That Complied
The exchanges which did not provide the information will end up being penalized. They will be put below all these exchanges that complied, which may hurt their businesses. The only way to climb again to the top is to provide accurate information as it was originally asked by CMC.
CoinMarketCap also promised to be harsher when evaluating the companies to provide the readers with more information about trading volumes, the team behind the companies and if they are engaged in suspicious trading (such as wash trading) or not.
Projects that missed the requirements will still be shown at the site, but in a much less prominent manner and they will show all the areas in which the company lacks information about them.
Apart from these companies, some of them will actually be delisted. Suspicious trading activity, as well as low volumes, will be the two main causes for that. The company shutting down or being involved in financial crimes will also cause a delisting.
Now, the first DATA round table is currently being prepared. Most of the companies involved will participate next month and several topics will be discussed in order to bring the project to its next phase, which will happen in the second half of the year.