New Metrics Keep Binance On Top; CZ says ‘We Were Wrongly Ranked on CMC for a Long Time’

Last month, CoinMarketCap released a new basis to rank the crypto exchanges, which was Web Traffic Factor. As per this, its owner Binance acquired the top spot with a 1000 score.

Last week, the crypto data site made some changes and now the ranking is based on a combination of reported trading volume, liquidity, and Web Traffic Factor.

Each market pair is then scored by Confidence indicator reflecting CMC’s confidence in the accuracy of the reported volume by an exchange. Carylyne Chan, interim CEO at CMC said,

“I believe this new ranking of exchanges will provide our users with an accurate reflection of the trading venues, as they are scored on a triage of factors that provide a complete picture.”

BitMEX, Deribit, & ByBit doesn’t make in Top 150 exchanges

After the new rankings were released, the leading options platform Deribit took to Twitter to share that they got a spot at 179 with a liquidity score of 0.

We are glad to inform you that @CoinMarketCap has ranked Deribit exchange at #179 with a liquidity score of 0. We want to take this moment to congratulate all the exchanges on the list that we've never heard of.

This is great work guys. 🤡

— Deribit (@DeribitExchange) June 8, 2020

Just like Deribit, the popular derivatives exchange BitMEX and Bybit are down at 175 and 177 spots respectively.

CoinMarketCap then took to Twitter to clarify that the new rankings were specific to spot exchanges and not derivative platforms.

“The latest ranking applies to spot market pairs and exchanges. A separate page will be available for derivative exchanges in the near future.”

As per Cryptowatch, FTX exchange leads with the highest liquidity followed by Bitfinex, BitMEX, OKEx, and then Binance.

Elsewhere, CZ retweeted a post where the user compared the leveraged tokens on Binance and FTX. “Binance issued leveraged tokens showed much lower slippage over time, -2%. FTX slippage is at -12%,” said the user.

However, the data was cherry-picked and Binance’s product had underperformed the FTX’s by 14%.

Also, it has been speculated the three months old twitter account with only three tweets so far to be a Binance employee.

Binance Keep the Top Spot

Now, the new ranking will be the staple for the next few months which yet again ranked Binance at the first spot with a perfect score of 1000.

Binance also got the third-highest score in average liquidity at 450 after Huobi (507) and OKEx (456).

After Binance the next few spots are taken by Huobi Global with Web Traffic Factor of 752 followed by Coinbase Pro (972), Kraken (856), Bitfinex (781), and Bitstamp (729).

This ruffled the feathers of many industry members but Alexandre Dreyfus CEO of tokenized sports exchange Chiliz came out in support of Binance. Back in May 2019, Chiliz had announced a strategic partnership with Binance Chain. Dreyfus tweeted,

“Should Binance be punished because they are bigger than others? It is no secret there they are number one. Data is data. Reality is reality. Breaking news: on Coingecko they are also number one – yet they don't know it.”

Coingecko’s exchange listing metric includes reported trading volume, reported orderbook data, web traffic, the scale of operations, and API technical coverage.

You don't understand how exchanges work. When you are NO1, you don't do wash trading. In fact, we were wrongly ranked around #15-30 on CMC for a long time, never bothered us. We know we have volumes, and our users know too.

— CZ Binance 🔶🔶🔶 (@cz_binance) June 8, 2020

“In this type of situations, we just “roll with the punches”. Keep buidling. Let others focus on us, while we focus on our mission,” is how Binance co-founder and CEO responded to the criticism adding, “We already have one of the best liquidity in the market.”

1 It's the standard way in traditional exchanges
2 We like to “hide” our volume so that we are not seen as that much bigger. But we choose this from our day 1, when we were very small.

Do we do wash trading? No.

2/2

— CZ Binance 🔶🔶🔶 (@cz_binance) June 8, 2020