CoinMarketCap To Alter Listing Metrics After Fake Volume Research

CoinMarketCap, the cryptocurrency industry’s most famous market data resource has made a promise to rearrange how it ranks member exchanges after recent research revealed evidence of fake volume. The company confirmed its upcoming changes via social media platforms on Monday.

CMC is often hailed as the industry’s most well-known tracking service for the market capitalisation of Bitcoin (BTC) and altcoins and activity of said coins on the various exchanges trading them.

However, just last week, research by the crypto index fund provider Bitwise uncovered that CMC hosts several almost entirely false volume statistics. As a cause of this, investors are deceived, and the profile of affected coins are inflated, as explained in Bitwise’s report.

CMC has taken heed of the warnings uncovered in the research and Bitwise has sent their findings to U.S regulators for consideration in its application to roll out a Bitcoin   fund (ETF),

CoinMarketCap executives took to Twitter writing:

“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.”

In the meantime, CMC’s global head of marketing, Carylyne Chan spoke to Bloomberg and allowed a glimpse as to the inner workings of how the website’s ranking would be altered in the future:

“For instance, if an exchange with low traffic has $300M volume and just 5 BTC in its wallet, users will be able to draw their own conclusions without the need for us to make arbitrary judgment calls on what is ’good’ or ’bad.”

This is not the first time that CMC has caught the attention of crypto experts. Previously the firm popped on the radar of The Tie, a trading platform, who shed light on crypto exchanges reported volumes.

CEO of Binance, Chanpeng Zhao, argued that any coin which ascends site’s rankings alienates experienced investors, who inherently assume its size to be suspicious.

Furthermore, last week saw two separate exchanges with suspicious trading volume figures overtake Binance on CMC’s adjusted volume rankings which is a section of the firm’s site which strives to refine any artificial volume and wash trading.

Lastly, Chan at the time of press could not divulge any solid timeframe for the implementation of the proposed changes to the website.