On bitcoin and other cryptocurrencies analytical portal CoinMarketCap responded to the allegations that posting false data on the trading volumes on the stock exchanges, it thus indirectly supports the so-called washout of the transaction.
To this step the administration CoinMarketCap pushed publish on the website Crypto Exchange Ranks a detailed description of how the portal gives the exchanges an incentive to publish fake volumes.
In particular, they talked about the little-known exchange Bitforex, which is due to the simultaneous purchases and sales at some point got up on the CoinMarketCap top ten trading platforms on the volume of transactions.
However, the analytical portal owners insist that they intend to provide “transparency and clarity” in this issue.
CoinMarketCap stands for transparency and clarity in data, ensuring that all coins and exchanges are represented fairly. We’ve written a post with regards to the exchange volumes and rankings, and how we plan to improve going forward. Read it here: https://t.co/CeP9mHG4d8
— CoinMarketCap (@CoinMarketCap) 19 July 2018
“We believe in transparency and open data. All information you see on our website is collected from hundreds of exchanges through the API that they provide to us. By listing, we do our best to be sure that their API is passed the most recent and accurate data,” — said in a blog CoinMarketCap.
The administration has confirmed that in recent weeks she watched the growing concern regarding the display of the volume of exchanges and their rankings. Most troubling community issues CoinMarketCap divided into three categories: the so-called mining using transactions in which Commission expenses kompensiruet users with their own token exchanges, low commissions and, finally, artificial volumes and washout of transactions with market makers or bots
“The complexity of the treatment of all these models are multi-faceted and deep. Despite the fact that we maintain contact with most posted on our website of stock exchanges, we cannot guarantee that all of them will give us the answer or will adhere to certain recommendations,” — say representatives CoinMarketCap.
Also, the portal says that although doing everything possible to verify data in an open ecosystem of cryptocurrency, it can not hold a policy of censorship or limitation of the actions of other players.
“The best policy, which we follow, is to give the maximum amount of data and provide users with the opportunity to make informed decisions about what data to do that.”
However, taking into consideration the concerns of the community and realizing what the consequences inaccurate data can have for the industry and its perception by people, the administration CoinMarketCap decided to take certain steps to address the issue.
So, according to the portal, the company informed the stock exchanges have been requirements regarding minimum trading volume, however, with the changing landscape of the industry, these requirements already from last Monday, July 16, was cancelled. Hopes CoinMarketCap, at least it will force the exchange to abandon the artificial increase of the volume.
“The lifting of the limit is partly aimed at countering the notion that trading volume is the only requirement that should be met for listing on CoinMarketCap. In fact, our team devotes considerable time to the study of the new coins and exchanges. We want to be confident that you are dealing with real projects and real teams”.
Also in the near future the portal promises to provide new metrics, including indicators for 7 of the 30 days, as well as information about the date of the founding of stock exchanges, which should help in assessing the integrity of data on volume of trading.
Administration CoinMarketCap also says open to dialogue with the community and hopes to work together to develop best practices that help to identify inconsistencies in the information provided.
We will remind, in June on CoinMarketCap was recorded transactions in the amount of $58 million in a pair BTC/USD exchange BTCC. The irony was that at that time the latter was not yet running, having started only on 2 July.