Coinmarketcap completed six years on 1st May 2019. It was designed and developed in the early phases of Bitcoin and cryptocurrency when there only a handful of Exchanges existed in 2013. Moreover, the volume was considerably low at the time and susceptible to manipulation and sudden movement. Therefore, Coinmarketcap provided with the weighted average of the price of all cryptocurrencies as reported on the Exchanges.
Since then Coinmarketcap has added a lot of features on its website including the Bitcoin’s Dominance, the total market capitalization charts and so on. Moreover, it was not performing the Exchange itself, hence, it was rarely held accountable for any scam or frauds.
Nevertheless, it came under the radar after recent reports revealed ‘fake reported volumes‘ of Exchanges. The reports estimated that more than 95% of the volume reported on Exchanges in fake and generated by ‘wash trading.’
CoinmarketCap has announced to introduce changes into the system to increase accountability and authenticity of the data.
We are paying close attention to the growing discourse surrounding “fake volumes” of exchanges…. With this in mind, we are delighted to announce that we are working with partners to address this multifaceted issue.”
Data Accountability and Transparency Alliance
As the name suggests, CoinMarketCap seeks to provide greater accountability and transparency in its reports. The alliance includes multiple steps towards achieving its’ goals. Until now CoinMarketCap has been completely neutral in its approach of reporting data.
In the first measure, CoinmarketCap has made the submission of ‘Ongoing live Trade Data’ and ‘Ongoing Live Order Book Data’ mandatory from 14th June 2019. The Exchange which does not comply with the mandatory rule will be delisted from the website.
Moreover, 12 exchanges have already joined the Alliance to lead the data transparency cause: Binance, Bittrex, OKEx, Huobi, Liquid, UpBit, IDEX, OceanEX, Gate.io, KuCoin, HitBTC, Bitfinex, and with many more DATA partners to follow.
Two more stages will be rolled out in the near future. Phase Two and Three include enhanced data metrics and self-reported statistics and analysis from CoinmarketCap.
Blockchain Explorer for Bitcoin (BTC) and Ethereum (ETH)
CMC also announced a blockchain explorer that will provide all the pieces of information from the public ledger of Bitcoin and Ethereum. While price will continue to be an essential metric for cryptocurrencies, this is being included to improve knowledge in the space about transactions on a public ledger.
The blog post noted that:
“… we’ve built our explorers to be cleaner, simpler and more catered towards the general user, rather than focusing on the power tools that they may not require.”
Coinmarketcap (CMC) is one of the most visited websites in the cryptocurrency space which is currently ranked 8th in the finance category for Websites. It is driven to include accountability and transparency which will be beneficial for the entire crypto industry in separating the ‘good from the bad’
Do you think we’ll see a drastic change in data reported by CoinMarketCap or it will more or less be the same? Please share your views with us.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com