The website CoinMarketCap (CMC), a popular data Explorer cryptocurrency market, in response to suspicions of cheating in the volume of trading on some exchanges through bogus trading (wash trading) 19 Jul published on his blog a statement by the Vice-President of marketing, Carilyn Chan. She reported that the site negate the requirement regarding the minimum trading on the exchange and plans to introduce new filters and indicators ranking of trade volumes with the aim “to provide users with the most relevant and accurate data.” These filters will include stock exchange indicators trading volume for the week and month (now available only daily subsistence allowance) and the metric of trading volume in different models of commissions.
The statement followed the publication on the website CryptoExchangeRankings, which describes the mechanism of how the relatively new exchange was able to get into the top ten. An example was a little-known exchange Bitforex that through the simultaneous buy and sell (wash) for some time ranked in the top 10 by daily trading volume.
Chan writes:
The problem of fictitious transactions on cryptomeria like UFO: some people claim that they saw, but there is no evidence and indicators that confirm their existence.
In particular, mining on the commissions (as on the stock exchange of Fcoin), a reduced fee and fictitious transactions on the part of many sites can lead to higher trading volumes that appear on the website. Chan continues:
Although we have contact with most of the exchanges displayed on the site, there is no guarantee that any of them will comply with any specific recommendations. But we must show users the most accurate prices and volumes on the basis of all the data that we have. The emergence of new models such as mining on commissions, means that there must be new methods of analysis of trading volumes.
CoinMarketCap is built around a collection of data sent by the exchanges, and although the team is trying to verify the information, Chan said that CMC does not practice censorship or support for specific platforms and users are free to choose what to do with these data.
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