Business 24 July 2018Erik Gibbs
CoinMarketCap introduces changes to combat fake volume concerns
In an effort to present more accurate data to users, cryptocurrency data tracker CoinMarketCap (CMC) has announced that it is enhancing its platform. The changes being implemented are designed to combat concerns over false volume figures and boost consumer confidence in the information presented.
Carylyne Chan, CMC’s VP of marketing, published a blog post discussing the enhancements, explaining that the site had already removed a requirement for exchanges to have a minimum volume to be listed, meaning users can now “…filter for more popular exchanges that could be listed on CoinMarketCap.”
In addition, Chan pointed out that CMC will introduce a series of ranking metrics and new filters designed to provide users with “the power to experience and use the data in a way that fits their needs most.”
There has been increasing concern over the possibility of exchanges fudging data in order to move up in the ranks. More recently, several new exchanges, such as BitForex, Coinex and FCoin, jumped high in the rankings, displacing more established exchanges such as Binance and OKEx. While Chan explained that there was no data to support any manipulation on the part of the exchanges, CMC still determined that there was an obligation to address the concerns.
“The issue of fake volumes on crypto exchanges is like a UFO: some people claim to witness it but there is no evidence and metrics to prove its existence,” stated Chan. “While we have a relationship with most of the exchanges listed on our site, there is no guarantee that any of them will respond or comply to any specific guidelines, but we have to continue showing users the best approximation of price and volume based on all the data we have available. The evolution of new models such as transaction mining also means that there needs to be new ways to account for volume. Compounding it is the fact that they are, in fact, enabling greater liquidity in the way that users are trading more readily on the platforms.”
According to Chan, CMC operates by collecting information sent by the exchanges. This information is compiled and then published, reflecting “the best approximation of price and volume based on all the data we have available.” She elaborated that CMC tries to verify the data it receives, but pointed out that the company neither censors nor polices others. Chan explained, however, that CMC “[understands] that these concerns are valid and have implications on the community and the impressions that people have about exchanges, even more than we are traditionally used to.” To that end, the company hopes the new changes will provide the reassurance users need.
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