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CoinMarketCap Responds to Bitwise’s Fake Trading Volume Repo...
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CoinMarketCap Responds to Bitwise’s Fake Trading Volume Report

The leading crypto market data tracking site, Bitwise recently released a research report that revealed how illusory the trading volume numbers of crypto exchanges outside the United States are.
The study by Bitwise, on one side, covered the recent Bitcoin (BTC) ETF filing with the SEC; and on other side found that approx 95% of the Bitcoin trading volume for the top-81 exchanges on CoinMarketCap, is possibly fake. Furthermore, Bitwise reported that only 10 cryptocurrency exchanges have ‘actual’ volume, including Binance, Coinbase, Kraken, Gemini, and Bittrex.
Correspondingly, CoinMarketCap (CMC) has agreed to the data release by Bitwise. The largest cryptocurrency market data aggregation site in the world is apprehensive of the fake trading that outbreaks the website. While responding to the Bitmain report, CMC mentioned that it has plans to include liquidity measures, real-time traffic data for listed exchanges and many more.
In recent times, CMC has frequently become a subject of criticisms for not conducting its due diligence before listing crypto assets on the platform, thereby predisposing investors to scam projects such as BitConnect and the likes.
CoinMarketCap is quickly moving ahead to address user concerns, as its key competitors are already taking on the opportunity to enhance their products based on CMC’s weaknesses. It is set to integrate new features that would foster transparency and ensure higher accuracy of cryptocurrency market data. It will also add other essential info such as liquidity measures, crypto balances in the hot and cold wallets of listed exchanges, etc.
It is already in the process of incorporating all of its users’ feedback and working towards adding a suite of new metrics which will help users get a whole picture of exchanges and crypto on the site. For instance, if an exchange with low traffic has US$ 300 million volume and 5 BTC in its wallet, users can themselves draw conclusions on what is ‘good’ or ‘bad’? On this occasion, Carylyne Chan, Global Head of Marketing of CoinMarketCap said, “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.”
In a bid to provide accurate and robust data to users, CoinMarketCap had launched two cryptocurrency indices on Nasdaq, Bloomberg, Reuters, and Borse Stuttgart on March 21, 2019. The index will cover the top 200 cryptocurrencies by market capitalization – first including Bitcoin (BTC) and second without Bitcoin. The one including Bitcoin will be called CMC Crypto 200 Index (CMC200) and one without Bitcoin benchmark will be called CMC Crypto 200 ex BTC Index (CMC200EX). Both the indices will be calculated and administered by German index provider Solactive and will be rebalanced on the last day of each calendar quarter.
CoinMarketCap is the most popular cryptocurrency market data aggregator. It is like a market where a lot of people in the crypto industry turn to for discovering prices, industry rankings, and exchange volumes. For the cryptocurrency amateurs out there, CoinMarketCap is the go-to site for all cryptocurrency market data, including market capitalization, prices, volumes and more.

coinmag

Jay is an experienced cryptocurrency trader who is well informed, knowledgeable and passionate about exposing scams in the cryptocurrency industry.

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