The most popular crypto data website, CoinMarketCap, has revealed that it will be reviewing its metric for listing the price of coins and exchanges.
CoinMarketCap is the most used platform for price and volume tracking of all listed cryptocurrencies, which also features the adjusted and reported trading volumes of cryptocurrency exchanges.
CoinMarketCap made this announcement after Bitwise, a cryptocurrency index fund service provider released a report which verified the volume statistics provided by CoinMarketCap in which it concluded that the collected data is false.
The report called “This Data Is Widely Reported … And Extremely Wrong” and reveals that CoinmarketCap’s data comprises mostly of fake trading volumes which portray a distorted image of the status of the cryptocurrency market.
Such data affects the analysis performed by investors and traders, which in turn influence their actions. From Bitwise’s report, it has been observed that a staggering 95% of the data is false, with the market being more regulated, organized and smaller in reality.
After five days since the report was made public, CoinMarketCap made a Twitter post in which it stated that they will add new metrics to provide “a fuller picture” of the crypto market on their platform.
We are listening to all our users' feedback, and we are working hard to add a suite of new metrics so users can get a fuller picture of exchanges and crypto on the site. What are some new metrics you would like to see? Share with us. 🙂 https://t.co/ZgEs80lH1S
— CoinMarketCap (@CoinMarketCap) March 26, 2019
The head of marketing for CoinMarketCap, Carylyne Chan, stated in a Bloomberg interview regarding the issue that several changes will be implemented into the site’s listing system. Chan also hinted that there are “plans to include liquidity measures, hot and cold wallet balances and traffic data for listed exchanges”.
“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.”-said Chan.
Featured Image: Medium
