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The popular cryptocurrency data site CoinMarketCap (CMC) will be changing some metrics in order to reflect better information about trading volume on crypto exchanges. A few weeks ago, Bitwise released information about how exchanges are manipulating their volumes to attract new investors. The information was released by Bloomberg on March 25.
CoinMarketCap Changes is Metrics
According to a recent report unveiled by Bloomberg, CoinMarketCap will be adding more information to its website. The main intention is to help users take better decisions. With this improvement, the company is going to be improving the data provided to users around the world.
CoinMarketCap is one of the world’s most visited sites. Indeed, it is among the top 500. The site is used by investors and individuals that are interested in the cryptocurrency market and want information about exchanges, digital assets and more.
Bitwise Asset Management explained in a report that there are several cryptocurrency exchanges that are performing wash trading activities. That means that crypto platforms inflate their trading volume to attract more users to their trading exchanges. When there is more trading volume, there is also more liquidity, something that crypto investors are searching for.
Bitwise has clearly explained that 95 percent of Bitcoin exchange trading volume listed on CoinMarketCap is fake. This report has been presented to the U.S. Securities and Exchange Commission (SEC) since the company is seeking approval for an exchange-traded fund (ETF).
Carylyne Chan, global head of marketing at CoinMarketCap, commented in an email to Bloomberg that they will be adding liquidity measures, hot and cold wallet balances and traffic data for listed exchanges.
On the matter, Chan said:
“For insance, if an exchange with low traffic has $300 million volume and just 5 BTC in its wallet, users will be able to draw their own conclusions without the need for us to make abritrary judgement calls on what is “good” or “bad.” We want to state that our philosophy is to provide as much information as possible to our users, so that they can form their own conclusions and interpretations — and not introduce our own bias into that mix.”
CoinMarketCap has also decided to remove volume requirements for exchanges to be listed. The website is very important for the space. Back in 2018, the platform decided to delist Korean exchanges from price aggregation. After it, the market plummetted abruptly.