Leading cryptocurrency data provider CoinMarketCap has announced that 70.3 percent of the exchanges listed on its platform have complied with its mandatory exchange data requests aimed at boosting transparency in trade volume reporting.
95 percent of the trade volumes reported by CoinMarketCap were fake according to a report released in April 2019 by Bitwise Asset Management. It suggested that CoinMarketCap reported approximately $6 billion per day in bitcoin trading volume at the time, whereas the actual figure was $273 million, or about 4.5 percent of the reported amount.
Following the allegation, CoinMarketCap formed an alliance with major cryptocurrency exchanges to work toward more transparent and reliable trade volume reporting. The alliance, dubbed the Data Accountability & Transparency Alliance (DATA), includes significant cryptocurrency exchanges like Binance, Bittrex, OKEx, Huobi, Liquid, Upbit, KuCoin, HitBTC, Gate.io, OceanEx and Bitfinex.
CoinMarketCap subsequently gave all listed exchanges 45 days to provide live trading data and orderbook data or risk being removed from the platform’s adjusted volume calculations.
The exchanges that have complied with CoinMarketCap’s stated requirements will continue to be listed on the crypto-data platform.
The company also plans to implement more stringent criteria for listing exchanges on its platform, including factors such as trading volume, community interest, traction, team, product-market fit, impact, uniqueness and time in market.
The global marketing head at CoinMarketCap, Carylyne Chan, expressed satisfaction with the work of the DATA initiative. Chan stated that the new criteria would ensure that only worthy, reliable exchanges were listed on the platform.
“We want to be as exhaustive as possible, eventually listing every qualifying project and exchange on CoinMarketCap,” she noted, per the announcement.
For exchanges that do not make the cut, there will be an “untracked listing” category, where platforms that do not meet the requirements can still appear on the website.
Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.