6/05 ANDY HOFFMAN (CryptoGoldCentral.com): Will June 14th Be Altcoin D-Day?
Last week, we FINALLY learned why Bitcoin Rhodium’s “circulating supply” had not yet been updated by Coinmarketcap.com. Apparently, CMC was in the final stages of launching its DATA alliance with cryptocurrency exchanges and data providers - to standardize price and volume reporting and weed out those who inflated supply data or trading activity.
In other words, it had nothing to do with questions about XRC’s accounting or beaurocracy within a very busy CMC…but instead, as the Bitcoin Rhodium devs were officially told, XRC’s lack of listing on at least one of the 22 DATA alliance endorsed exchanges, which were first announced on May 1st. When the XRC devs learned this, they immediately made this their TOP PRIORITY – which is why I wrote of the “soon-to-be-crossed coinmarketcap.com hurdle on Saturday.
There are many crypto data providers - but at this point in time, coinmarketcap.com remains the dominant website; as unquestionably, more investors look at it to find new crypto ideas then any other. Moreover, investors closely follow the CMC market cap rankings – of which, roughly 350 of the 2,200 listed coins, including BRhodium, do not have, because their circulating supply has not been listed (market cap is calculated as volume-weighted average price times circulating supply).
TOTAL supply is listed for all CMC listed coins – but not the lower “circulating supply” number that excludes coins locked up, and thus not tradeable (as CMC aims to prevent inflated supply figures).
To that end, I expect XRC’s circulating supply will be calculated to be around 550,000 – as likely, CMC will subtract from the 883,000 total supply the 250,000 XRC Strong Hands escrow fund and the portion of the 210,000 PR/Devs fund that has not yet been spent. If this is the case, XRC’s market cap today would be about $10 million, giving it a rank of around 325 of 2,200. And if CMC doesn’t attempt to exclude the unspent PR/Dev coins, it would be closer to $12 million, giving it a ranking of around 300. Pure speculation on my part, but these are my best guesses.
https://coinmarketcap.com/currencies/bitcoin-rhodium/
That said, per the title of the below article, June 14th could have huge ramifications for the entire cryptocurrency sector - as this is the deadline the newly launched DATA alliance has given for compliance to its rules. To that end, the title of this article has been changed since I first saw it four days ago, to a far more draconian “coinmarketcap.com to remove exchanges from calculations if they don’t provide mandatory data.”
In the article, it states the following…
“Crypto market cap tracker CoinMarketCap (CMC) will remove exchanges from its calculations if they fail to provide mandatory data by June, the firm wrote in its sixth anniversary blog post on May 1.
As part of its transparency initiative, CoinMarketCap will also now require all the crypto exchanges to provide mandatory API data that includes their live trading data and live order book data. Stressing that the condition will be mandatory, CMC wrote that any exchange that does not provide this mandatory data will be not be included in the price and adjusted volume calculations on the site.
The exchanges now have a 45-day grace period to send the required data, while changes will come into effect on June 14, 2019, CoinMarketCap noted.
The new announcement comes on the heels of the recently sparked controversy around CMC’s volume statistics. On March 20, crypto index fund provider Bitwise Asset Management released research claiming that 95% of the volume on unregulated exchanges is likely to be fake or non-economic in nature. Following the analysis, CMC officially announced plans to rearrange the rankings of member exchanges.”
Taken literally, “remove exchanges from calculations if they fail to provide mandatory data” suggests that a significant portion of the 1,850 or so “ranked” altcoins (by market cap) on coinmarketcap.com could see their rankings stripped June 14th, if the exchanges they trade on are not DATA alliance compliant.
There is no way to sort how many coins are not listed on the one of the 22 compliant exchanges, but it is unquestionably a significant amount. Conversely, many exchanges are likely furiously updating their APIs to be compliant – a perfect example, very likely, being p2pb2p, where Bitcoin Rhodium trades the large majority of its volume.
Though functioning at nearly full capacity, p2p has been under extensive maintenance since May 7th, just six days after CMC posted the DATA alliance’s criteria. They claimed it was to upgrade security following the May 7th Binance hack, but I suspect it as well, is to upgrade API’s to achieve CMC compliance by June 14th. We’ll see soon, but even if not, I am confident the XRC devs’ TOP PRIORITY of listing on a CMC-compliant exchange will yield results in the near-future.
For three years, I have maintained that the vast majority of altcoins are useless pump and dump schemes – that ultimately will be weeded out by an increasingly discerning crypto community. If indeed the CMC rankings are about to be significantly filtered, many will drop into permanent obscurity, as they should. Conversely, high quality coins that can attract and finance listings on top quality exchanges will become more prestigious, and draw more investment capital – from new investors, and those exiting lower tier coins.
This could have major, long-term ramifications for the cryptocurrency space – including, in my very strong view, a significant upgrading of the communities’ view of, and expectations of the future of, Bitcoin Rhodium!
Bitcoin Rhodium currently trades on p2pbp2.io, Trade Satoshi, Fat BTC, Sistemkoin and Bisq. If you have questions about anything XRC-related, including OTC trading, please email me at [email protected], or DM/PM me on Twitter or Discord.