CoinMarketCap, the popular crypto market tracker, has decided to remove the exchanges that will not provide certain data by June after a report showed that many of them sourced false trading volumes.
According to its blog post, CoinMarketCap has revealed that they will be undertaking six new initiatives in the near future to improve the accuracy of its data. The platform will try to make exchanges provide authentic data as a part of the “data accountability and transparency alliance.” The initiative will also concentrate on developing block explorers, a shop, mobile apps, and a revised plan for APIs.
The transparency initiative was introduced by the team, and they have stated that they will be looking into fake volumes more intently:
“We are paying close attention to the growing discourse surrounding “fake volumes” of exchanges. This is not a trivial problem to solve, as seemingly innocuous decisions can carry unintended consequences. To add to the complexity, we need to be mindful of the numerous use cases for our data – what some deem to be “fake data” is information in and of itself that can yield interesting analyses, and it is important not to throw the baby out with the bathwater.”
The aims of this initiative are to “review, align and enhance” how standards are reported and to “identify gaps, propose strategies and measures to enhance data accountability and transparency” in order to improve the overall user experience:
“DATA seeks to promote greater transparency, accountability, and disclosure from projects in the crypto space. This initiative is underpinned by our belief that the provision of additional data points would: (i) empower our users to make more informed decisions, and (ii) provide a means for projects to differentiate themselves through enhanced disclosures.”
CoinMarketCap is the most used platform for crypto data and prices and it has faced scrutiny after reports revealed that many exchanges were involved in wash trading.