CoinMarketCap Gives Exchanges 45 Days Deadline to Provide More Data
The most popular crypto market data provider, CoinMarketCap gave 45 days deadline to all exchanges, listed on the website, to provide additional data in an attempt to address the fake trading volume problem.
Now, exchanges are obliged to additionally send live trading and live order book data, the company announced on Wednesday, when it celebrates its 6th birthday.
“These data points will enable analyses to determine measures such as liquidity, order book depth, spreads, and other meaningful measures. With these additional data points, users will be better able to contextualize the pricing and volume being reported on the site and API [application programming interface],” it explained.
“Exchanges who don’t provide the data will still be on the site, and continue to have their reported volumes shown, but their volumes and prices will be excluded from our Adjusted Volume metric and volume-weighted average price (VWAP) calculations,” Carylyne Chan, Head of Marketing at CoinMarketCap told Cryptonews.com. The changes will go into effect in 45 days, starting June 14.
The list of exchanges, ranked by adjusted volume, includes almost 150 entities that already provide the new required data, while there are more than 100 exchanges that risk to be excluded from the list.
Around 95% of trading volume on Coinmarketcap is fake and/or non-economic in nature, crypto investment company Bitwise Asset Management said in March. However, exchanges engaging in wash trading actually follow a predictable pattern so they can be exposed by any trader, as previously reported.
In a recent interview with Cryptonews.com, one of the main competitors of CoinMarketCap, CoinGecko, also said that they’re planning to provide more data in the coming weeks and months that might help better evaluate exchanges.
Meanwhile, during the next phases, CoinMarketCap is planning to add even more data available for analysis and enable filtering to allow deeper analyses and views into the exchanges’ operations. Also, every listed project – cryptocurrencies and exchanges – will have a chance to demonstrate “the effort it has put into promoting accountability and transparency” by providing additional information about themselves (e.g., about their team, investors, location.)
The new initiative announced as a part of their newly launched Data Accountability & Transparency Alliance (DATA). Among its first members are exchanges such as Binance, Bittrex, OKEx, Huobi, Liquid, UpBit, IDEX, OceanEX, Gate.io, KuCoin, HitBTC, Bitfinex.
The Alliance aims to review, align, and enhance reporting standards across the industry, and identify gaps, propose strategies and measures to enhance data accountability and transparency.
The DATA exchange partners will provide not only mandatory data, but “self-reported information on an ongoing basis,” also, according to CoinMarketCap.
Also today, the company updated their API pricing, launched a block explorer and their merchandise shop.
In March, CoinMarketCap had almost 58 million visits, according to digital market intelligence platform Similarweb.
