CoinMarketCap Will Remove Exchanges Faking Volumes From Their Calculations!

firepower (79)in #cryptocurrency • 5 years ago

CoinMarketCap or CMC as it's popular known in the crypto world has announced in their 6th anniversary blog post that they will remove exchanges from listing on their website if they fail to provide necessary data by June.

As part of its initiative to ensure greater transparency in exchange volumes CMC will now requite all crypto exchanges to provide mandatory API data which will including live trading and live order book datas by June 14, 2019.

These data points will enable analyses to determine measures such as liquidity, order book depth, spreads, and other meaningful measures. With these additional data points, users will be better able to contextualize the pricing and volume being reported on the site and API.

Any exchange that does not provide this mandatory data to us via a new or updated summary endpoint will be excluded from all price and adjusted volume calculations on the site.

There is a 45-day grace period for all exchanges to send this new endpoint to us, and changes will go into effect on June 14, 2019.

In the past there have been some controversy in the market about fake volumes on exchanges and CMC hopes to curb this problem by forcing exchanges to be honest about their information they provide to CMC.

Today, 12 exchanges have already joined the Alliance to lead the data transparency cause: Binance, Bittrex, OKEx, Huobi, Liquid, UpBit, IDEX, OceanEX, Gate.io, KuCoin, HitBTC, Bitfinex, and with many more DATA partners to follow.

In the recent past I've posted about the importance of using exchanges with real trading volumes in the past. You can find that post here and also compare exchanges here

Always remember to use legit exchanges that provide a consistent service, trading volumes and order books and fast order matching.

Overall it's a good initiative from CMC and I hope it brings the much needed transparency and accountability in this space. Atleast, this is a good start.

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