CoinMarketCap (CMC), so-called trustworthy source for tracking the trading volume of Bitcoin and altcoins is seeking out the new listing metrics from users. CMC agrees to Fake Crypto Volume as an issue and planning to add a suite of new metrics.
CMC seeks to Alter Listing Metrics To Fight Fake Trading Volume
Whoever knows about Bitcoin or cryptocurrency at large will certainly visit CoinMarketCap to know the current trading volume of their favorite altcoins. This biggest aggregators of crypto market data have recently been caught and reported as providing inaccurate information – as a result of increasing media publications talking about 95% of Coinmarketcap’s BTC trading volume report is fake, the firm announced its plan of improving the site’s metrics.
CMC’s Twitter update on March 25 states that they will alter their metrics that would result in exchange’s ranking and the ranking of altcoins on their site. The announcement goes as follows;
It all started when Bitwise Asset Management’s report claimed CMC’s 95% of BTC trading volume is fake and artificially created by unregulated trading platforms – with this Bitwise presented their study report (a presentation of 226 slides) to the US SEC (Securities and Exchange Commission). According to Bitwise, only $273 million of CMC’s BTC trading volume was legitimate. Addressing the increasing concern of people talking about the crypto market, Matthew Hougan, the global head of Bitwise’s research unit says;
“People looked at cryptocurrency and said this market is a mess; that’s because they were looking at data that was manipulated”.
11/ Good news time!
Arbitrage between the 10 real exchanges has improved significantly. The avg price deviation of any one exchange from the aggregate price is now less than 0.10%! Well below the arbitrage band considering exchange-level fees (0.10-0.30%) & hedging costs. pic.twitter.com/wCGOkZ1k2F
— Bitwise (@BitwiseInvest) March 22, 2019
So as for now, Bitwise has already sent their study report to the US SEC as part of their ETF (Exchange Traded Fund) – meanwhile, CMC agreed to the concerns of inaccuracies are valid and promised to improvise its metrics to help users make better decisions.
Nevertheless, as seen on today’s CMC graph, the trading volume of Bitcoin and major altcoins are declining but few mysterious coins are jumping with the highest volume – without any optimistic reason.
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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