CoinMarketCap answered the accusations about the issue for publishing unreliable data on trading volumes on stock exchanges.
To this step, the administration of CoinMarketCap was pushed by the publication on the Crypto Exchange Ranks website of a detailed description of how the portal gives the exchanges the incentive to publish fake volumes.
In particular, it was a question of the little known Bitforex exchange, which at the expense of simultaneous purchases and sales at some point rose to CoinMarketCap in the top ten trading platforms in terms of volume of transactions.
However, the owners of the analytical portal insist that they intend to provide “transparency and clarity” in this matter.
CoinMarketCap stands for transparency and clarity in data, ensuring that all coins and exchanges are represented fairly. We’ve written a post with regards to exchange volumes and rankings, and how we plan to improve going forward. Read it here: https://t.co/CeP9mHG4d8
— CoinMarketCap (@CoinMarketCap) July 19, 2018
“We believe in the need for transparency and openness of data. All the information you see on our website is collected from hundreds of exchanges through the APIs that they provide to us. By listing the stock exchange, we are doing our best to be sure that their APIs transmit the latest and most accurate data, “says CoinMarketCap.
The administration of the portal confirmed that in recent weeks it has seen growing concerns about the volumes of exchanges and their ratings. The most disturbing community issues CoinMarketCap divided into three categories: the so-called mining by means of transactions, in which the commission costs of users are compensated with the help of their own exchange tokens, understated commissions and, finally, artificial volumes and washing transactions made with the help of market makers or bots.
“The complexity of handling all these models is multifaceted and profound. Despite the fact that we maintain contact with most of the exchanges placed on our website, we can not guarantee that they will all give us an answer or will follow certain recommendations, “the representatives of CoinMarketCap note.
The administration of the portal also says that although it does everything possible to verify the data, in an open ecosystem it cannot keep a policy of censorship or restrict the actions of other players.
“The best policy that we adhere to is to give the maximum amount of data and allow users to make informed decisions about what to do with these data themselves.”
Nevertheless, taking into account the community’s concerns and understanding what consequences the unreliable data may have for the industry and its perception by people, the CoinMarketCap administration has decided to take certain steps to resolve the issue.
So, the portal notes, earlier the stock exchanges demanded minimum trading volumes, however, due to the changing landscape of the industry, these requirements were abolished already on Monday, July 16th. As CoinMarketCap hopes, at least this will force the stock exchanges to abandon the artificial overstatement of volumes.
“The cancellation of the limit is partly aimed at combating the notion that the volume of trades is the only requirement that must be met for listing on the CoinMarketCap. In fact, our team devotes considerable time to studying new coins and exchanges. We want to be sure that we are dealing with real projects and real teams. “
Also in the near future, the portal promises to present new metrics, including indicators for 7 of 30 days, as well as information on the date of the foundation of the exchanges, which should help in assessing the integrity of data on trading volumes.
The CoinMarketCap administration also says that it is open to dialogue with the community and hopes to work together to develop best practices that help to identify inconsistencies in the information provided.