Coinmarketcap Responds to Accusations of Aiding Wash Trading
The crypto monitoring website has stopped short of promising an outright prohibit or downgrade for exchanges that produce intentionally fake quantity, finishing: “Our philosophy is to give as much info as possible to our customers, so they can produce their own decisions and interpretations — and not introduce our own bias within that mix. ” As of today, Bitforex still stands at 15th place on CMC by 24-hour quantity, together with $138 million documented, $37 million over Bitstamp.
Acknowledging that some entities are intentionally gaming the system, CMC proceeds to explain its decision to get rid of minimum quantity requirements for exchanges. What this implies, in practice, is that platforms aren’t required to reach a minimum transaction quantity to be listed on the site. It is estimated this will discourage exchanges from inflating quantity to meet CMC’s entry criteria. The site is also introducing measures like 7-day and 30-day volume metrics that are designed to protect against the likes of Bitforex from gaming the system.
Trade and Prices
Coinmarketcap Cleans Its Shop
CMC Changes Its Information Policy
Even though we try our best to check the data with the exchanges on our site, we aren’t in the tradition of censoring or policing others. In an open environment like the one we are inwe think the ideal policy — that we follow carefully — is to over-provide on data and allow users create their own educated choices about what to do with that data.
Also read: The Way Coinmarketcap Incentivizes Exchanges to Report Fake Volume
Following the narrative, Coinmarketcap has hit with a blog post detailing its decision to clamp down on this behavior. It defines three problems that have been brought to its focus: fee-free/transaction mining models, very low fee models, and synthetic volumes/wash trading. In reference to the latter, it clarifies: “To be able to ensure that their listings remain active on specific exchanges, sometimes jobs are taught to keep a minimum degree of quantity. This causes jobs to heavily employ market making services and bots to trade their own coin to inflate their volumes.
Coinmarketcap (CMC), the internet ’s popular cryptocurrency tracker website, has responded to accusations it is implicit in supporting currency trading. Last week, a platform named Crypto Exchange Ranks published detailed allegations of how CMC incentivizes exchanges to report fake quantity. In a brand new blog article, Coinmarketcap has its own decision to encourage “transparency and clarity”.
Since news.Bitcoin.com reported , Coinmarketcap was taking flak for publishing questionable data from specific crypto exchanges. The market at the middle of the furore on this event proved to be a little-known platform named Bitforex that almost no one had heard of until recently. Through wash trading — simultaneously purchasing and selling its own platform to make the illusion of large quantity — Bitforex was able to leapfrog into the top 10 based on CMC’s rankings.Can you think Coinmarketcap’s latest steps to combat fake quantity will succeed? Tell us in the comments section below.
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