In 2019, it was reported that 95% of the bitcoin trading volume is fake.
About a month after that, CoinMarketCap said they are “working hard to build constructive solutions to address volume concerns.”
Now, a year since the report came, CoinMarketCap has found the solution to tackle this issue.
Over a month after the leading spot exchange Binance acquired CMC in a $400 million deal, the crypto data tracker has exchanged the “volume” criteria for ranking cryptocurrency exchanges with the web traffic category.
à la ‘If you don’t have a solution, change the question!’
Real Volume? Remove suspicious volume!
Interestingly, the day Binance acquired CMC, the exchange was ranked 15th with a reported volume of $6.7 billion. However, the adjusted volume, a metric to exclude data that is “skewed or potentially suspicious,” reported just over $2 billion.
But this metric is now removed from the site.
If exchanges try to game web traffic, we are ready adjust the algorithms to include other matrices.
We strive to maintain a high standard for data transparency and integrity in our industry.
More details about this update at: https://t.co/xhEPni72Nx
— CZ Binance 🔶🔶🔶 (@cz_binance) May 14, 2020
And based on the new metric, Binance got the top spot!
“What did you think was gonna happen? Six weeks in and binance acquisition of CoinMarketCap already being abused to manipulate the rankings,” called out analyst Mati Greenspan.
Greenspan has been against Binance’s decision to acquire CMC from the start which he said is “buying out the ranking site in order to manipulate your way to the top.”
According to Binance founder and CEO Changepeng “CZ” Zhao, the new rankings are “better than before,” and he finds it useful as “I can finally have a clear view of the field and see who the real upcoming exchanges are.”
With the new metrics, “We strive to maintain a high standard for data transparency and integrity in our industry,” he said.