Many influencers, crypto analysts and investors have weighed in on the possible disadvantages or opportunities that await altcoins due to the recent coin market cap adjustment of coin ranking standards.
CoinMatketCap Announces New Ranking Matrics
CoinMarketCap, perhaps the most influential and widely used cryptocurrency ranking platform which is a platform created to track the capitalization of different cryptocurrencies, the number of trades that use them and the current price converted into fiat currencies, and updates this information every five minutes, recently, announced that it was adjusting its ranking criteria to follow a new set of strict principles.
In their effort to weed out supposed “fake coins”, CoinMarketCap released a metric to identify and screen out fake volumes on the coin ranking platform. According to CoinMarketCap,
“Due to the segmentation logic of this change, some crypto assets that did not meet the criteria had harsher-than-intended rank drops,” the firm said in a blog post. “In extreme cases, a crypto asset dropped 1000 ranks.”
In opposition to the criticism of reporting fake data from numerous exchanges that the platform has received over the years, CoinMarketCap, according to their blog post, will soon integrate a new liquidity-based metric into its projects and exchange ranking process.
What Influencers Think Of Alt Coins
Renowned tweet poet and cryptocurrency influencer, Max Keiser recently took to his Twitter handle to weigh-in with the new CoinMarketCap ranking metrics and how that might affect altcoins. In his Twitter prediction, Max maintained that alts have now seen the beginning of the end. According to Max, the new adjustment would birth the death of alts along the line. He expressed the belief that alts have been up due to acute statistical and manipulation, a condition which will be defeated by this new inputs.
This (CMC adjustment), will knock alts down in a big way. As market matures, statistical and manipulation games that have kept alts up – will disappear – and huge price drops will ensue. BCH and BSV are particularly vulnerable. https://t.co/Cmy87xAIMO
— Max Keiser, tweet poet. (@maxkeiser) August 31, 2019
Conversely, different influencers seem to have different points of view. According to another influencer and analyst, Leon Fu,
I believe alt season will return because the primary purpose of Bitcoin is…to trade alt coins. Can anyone tell me any current use case of BTC that comes anywhere near the daily trading volume of alts/BTC? If SOV follows utility, that is the leading utility of BTC.