CoinMarketCap Acquires Firm To Improve Crypto Data Services

In a move to improve its cryptocurrency data services, CoinMarketCap is acquiring a tech firm which is developing a technology which would purportedly provide a “true price” for all cryptocurrencies.

This marks the first-ever acquisition for CoinMarketCap who in a press release on Wednesday stated that it’s purchasing Hashtag Capital. The startup develops algorithms which analyse “all points of available liquidity” to ensure that assets are more accurately reflected.

Originally an absolute returns crypto trading fund, Hashtag Capital has since begun work on creating ways to develop improved quality market data as part of its fund management services. This project is what initially attracted CoinMarketCap to the firm as per the release. The entire Hashtag Capital team will join CoinMarketCap once all the paperwork for the acquisition is complete.

The news comes hot on the heels after CoinMarketCap rolled out a transparency initiative with several crypto exchanges on May 1. The project saw these firms establishing a new group known as the Data Accountability & Transparency Alliance (DATA). The alliance will explore avenues to address concerns surrounding crypto data reporting.

At the same time, CoinMarketCap mandated that all crypto exchanges listed on its platform must provide live trading and order book data or be removed from the sites adjusted volume calculations.

Notably, Bitwise Asset Management, a crypto index fund provider has claimed that 95% of all reported BTC trading volume is falsified and that the actual spot market for the asset only exists on 10 different exchanges.

Brandon Chez, CEO and founder of CoinMarketCap, stated:

“We are excited to push the envelope on cryptocurrency pricing at CoinMarketCap, going beyond our traditional volume-weighted average prices to even more sophisticated price algorithms and analyses. The Hashtag Capital team will be able to add significantly to our data efforts, and drive the next phase of CoinMarketCap in providing data products to the market.”

Lastly, CoinMarketCap has also made changes to its executives, promoting Carylyne Chan from the global head of marketing to chief strategy officer and promoting Emily Hurd from the head of business development to chief revenue officer.