One of the major concerns of many crypto traders today is ‘when will Coinmarketcap (CMC) finally alter and improve its metrics’. As seen recently, Bitwise report shared analysis on Coinmarketcap which claims 95% of CMC’s BTC volume is fake. Addressing the similar topic, CZ, CEO of the world’s largest cryptocurrency exchange, Binance states that ‘its, not so much Coinmarketcap’s fault’.
Not So Much Coinmarketcap’s Fault
In the latest interview with news media, Changpeng Zhao (CZ), CEO of Binance explained what went wrong with the case of Coinmarketcap. Claiming his own exchange as the realistic and transparent trading platform, CZ said that ‘it’s not so much Coinmarketcap’s fault’.
He says that Coinmarketcap or CMC follows simple mechanism, when there’s a project/exchange requesting them to list it on CMC, they show their data. This indicates that there are many poorly regulated or unregulated trading platforms which must be displayed with more transparent and realistic features. Although he doesn’t seem to defend the Coinmarketcap, rather he explained with a simple instance of listing any project on Binance exchange and how the project fights back if Binance denies listing them.
Explaining that he says;
Binance crypto trading volume is very solid and is very real. I think, basically, in the industry, the more reports like this, the better, the more transparency, the more data use, the better. It’s not so much coinmarketcap’s fault, CZ said adding that because CMC is very simple reporting mechanism where every exchange reports their own data to them and they just show it.
CoinMarketCap Reveals Three Upcoming Features
As for Coinmarketcap official reporting is a concern, they hint three major aspects that its team is working on. These include Liquidity measures, Cold/Hot Wallet balances, Traffic Data to show users on its platform. Moreover, the official email reads that;
The best way to mitigate the issue is to give users more control over their experience while using CMC. Giving them the tools to create custom views and filter through the data in a way that is most relevant to them will be a giant step in the right direction.
What Role Does Binance Play in Solving these Issues?
Most exchanges depend on CMC to give them internal traffic to a very large extent. CZ hints that Binance has already sent a few key ideas to CMC to crack down the issue. Additionally, he also says that he works very closely with Coinmarketcap guy and looking to resolve these issues collectively. He says;
We do have the role to play, said CZ while explaining what role does Binance play. It’s not that we’re not working on it, Binance is very solid volume exchange, and we don’t exhibit any bad behavior. We do try to encourage transparency in the industry. We cannot really do worldwide is an exchange, we cannot be attacking the other exchanges.
Nevertheless, Binance shared them the number of ideas but whether to do it or not or how they do it is really up to them, said CZ. He further stated that It’s not easy to solve the issue, it’s difficult when it comes to implementation. Just to remind, CZ earlier also responded to a tweet that mocks Coinmarketcap on this issue. As a response he said; I challenge you to do (not talk) better!
Have u thought about how much effort CMC team put in to build @CoinMarketCap? And the value they contributed to our space? Just one glitch in data (from a 3rd party source) doesn’t erase that. Look at people’s credits.
I challenge you to do (not talk) better!
— CZ Binance (@cz_binance) March 6, 2019
What do you think the best practice Coinmarketcap should implement? share your thoughts with us
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com