Critics and analysts emphasize this CoinMarketCap This benefits the owner company, in particular by eliminating other indicators that were not favorable for them Binance compared to other exchanges.


CoinMarketCap, The portal, which was considered one of the main references for finding data in the cryptocurrency market, introduced a number of changes to its exchange classification system, which is now listed Binance primarily and deleted data that was not very cheap for the company.

According to information published by various news portals, The new system classifies the exchange according to the volume of web traffic. This has been confirmed CoinMarketCap This suggests that they will now opt for this new system instead of asking the platforms to send the appropriate data, which reflects much more transparent data associated with the operating companies.

However, critics and analysts emphasize this These changes seem to benefit Binance, Company that started buying a month and a half ago CoinMarketCap for USD 400 million. In particular, they point out that this particular change benefits the owner over other exchanges, which she calls the most recommended above Coinbase Pro and BitMEX.

The CEO of Binance, Changpeng Zhao and the managing director of CoinMarketCap, Carylyne Chan said so This measure appears to be a better indicator for assessing the legitimacy of the exchange. On the other hand, analysts assure that many people act through API, This would reduce visibility for other platforms that see greater operational volume through these channels.

CoinMarketCap and changes in favor of Binance

Although these types of changes may well aim to provide more accurate data on the volume of web traffic registered by exchanges, the measure has met with great mistrust from critics, precisely because these changes mainly benefit from it Binance, especially if the company’s CEO guarantees it CoinMarketCap It would continue to work regardless of the platform’s interests, at least in terms of cryptocurrency listing and market data reporting.

Another aspect that caught the critics’ attention was Remove the ad Washing trade“” This reflects fraudulent information about the volume of buy / sell transactions that have been used to increase the numbers processed by the exchange platforms.

Until then Binance completed the purchase of CoinMarketCap, The stock exchange was ranked 15th on the indicator Washing trade, with an estimated global volume of $ 6,700 million, but with a correction that will activate it in $ 2,100 million, aside from the excessive trading volumes due to the Washing trade.

Regarding the volume of the adjusted business operations, the CoinMarketCap he explained:

This indicator leads to an examination of the stock exchange operations without separate or potentially suspicious data. The adjusted volume thus represents a more precise proportion of rig operations …

Loss of credibility

Different analysis companies Blockchain underline the importance of Washing trade. In particular, a report from Bit by bit He estimates that 95% of the stock market volume is wrong and is only used to attract more users and companies interested in commercial operations or possible strategic alliances.

Although Zhao and Chan insured that at the time CoinMarketCap It would remain impartial about his work, these changes seem to go in the opposite direction to this vision, precisely because the exchange that would benefit the most in this order of ideas would be Binance, and because indicators are omitted that require greater transparency of the data shared by the market’s data platform.

Currently, these latest updates are in addition to the irregularities reported in the operations of CoinMarketCap along its history. For 2018, some analysts accused the portal of increasing the numbers that correspond to the operations of Bitfinex, In 2019, the case of a Russian company was announced that counterfeited trading volumes to place certain tokens among the digital capitals with the largest capitalization.

related posts

Source: Decrypt /. Cointelegraph

Angel Di Matteo’s version / DailyBitcoin

picture of DailyBitcoin


Add Comment

Your email address will not be published. Required fields are marked *