Friday, January 17, 2020

Coinmarketcap Will No Longer Tolerate Fake Trade Volumes From Exchanges

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Adedamola Bada
I'm Damola, a computer engineer from Obafemi Awolowo University. A crypto enthusiast, marketer, and writer who is seeking to achieve career excellence through hard work and positive contribution to the organization that aspires for excellence. Contact me on damolabada@gmail.com

It appears that Coinmarketcap is no longer taking chances with its commitment to uphold transparency and trust in the ecosystem. This was revealed recently on the company’s website in commemoration of its birthday, serving as a notice to everyone that the platform will be effecting changes to the way information is collected and shared by it.

A Call For Transparency

The brilliant team behind CMC has stated that their responsibility is clear to them and will certainly be carried out for the good of the platform and all who make use of its services. Coinmarketcap has grown in the past six years to become a very important and the most commonly used platform for crypto enthusiasts. Little wonder the trust showered on the platform by its users means a lot to it.

Recently, things have been going a bit sideways as clients are beginning to question the integrity of the platform, pointing accusing fingers that suggest the company publishes unreliable information from exchanges on coinmarketcap.com. Therefore, the company has taken measures to locate the sources of the concern and to put an end to them before they reduce the integrity of the platform any further.

coinmarketcap

Coinmarketcap made the announcement after a study conducted by Bitwise Asset Management, which was forwarded to the SEC, went viral. The study revealed that 95% of all trading volume reported by exchanges is fake.

Coinmarketcap’s DATA Initiative

To show seriousness towards its commitment, Coinmarketcap launched an initiative named DATA, which stands for Data Accountability & Transparency Alliance, to facilitate an alliance with crypto exchanges all over the globe for the purpose of providing “greater transparency, accountability, and disclosure from projects in the crypto space.”

DATA’s main objectives include:

•    Examine, organize and improve reporting standards across the industry.

•    Recognize gaps, recommend strategies and measures to improve data transparency and accountability.

So far, a good amount of exchanges have shown support for the initiative, according to the platform:

“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.

Each of these exchanges is contributing significantly to the ongoing standard-setting discussions, and are paving the way for accountability and disclosure in the cryptocurrency space.”

Is Binance the Most Transparent Exchange?

Of all the exchanges mentioned above, Binance has proven time and again to be the most transparency-driven. Even the Blockchain Transparency Institute places Binance at the top of its list, declaring it as the most transparent exchange in the digital assets world.

Binance is one exchange that has nothing to do with wash-trading, according to BTI’s research. Wash-trading is a malpractice done by investors whereby the market is manipulated by them to create simultaneous trades aimed at causing a deception in the marketplace.

Recent analyses have shown that the Binance platform stands tall as a true exchange which does not engage in the manipulation of trade volumes as can be confirmed by the Blockchain Transparency Institute.

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