As far as crypto market capitalizations, price, and information go, CoinMarketCap is the most dependable and reliable source available. Founded and established in the United States of America, CoinMarketCap is a subsidiary of Coinbase, Inc. Since its inception, CoinMarketCap has served as the most reliable source of cryptocurrency price data. According to individuals and organisations alike, it’s the most reliable source for evaluating thousands of crypto companies in the fast-expanding cryptocurrency market.
CoinMarketCap is committed to providing users with timely, accurate, and unbiased data, allowing them to make their own well-informed decisions based on that data. As one of the most often accessed and a leading source of cryptocurrency market statistics since its inception in 2013, CoinMarketCap has grown into a major player in the cryptocurrency field.
A $100 billion decline in the overall cryptocurrency market value occurred in January 2018 after CoinMarketCap creator Brandon Chez delisted South Korean exchanges from the site without warning, despite an attempted doxing by The Wall Street Journal.
In Terms of Data Openness and Clarity, Coinmarketcap Is the Place to Go – Coinmarketcap
Transparency and openness are important values for us here at CoinMarketCap. All of the data you see on our site is compiled using APIs provided by hundreds of different exchanges. When listing exchanges, we make every effort to ensure that the APIs they provide will deliver the most up-to-date and accurate data.
Our live blog is back for day two of the @Bitcoin2022 main conference! 🚀
— CoinMarketCap (@CoinMarketCap) April 8, 2022
Concerns About Volume
Exchange volumes and rankings have been the subject of growing criticism in recent weeks.
According to a number of people who have come forward, there are three key issues that have been skewing the data on our site
Exchanging companies are now using transaction mining to reward their customers with tokens when transactions are completed. All exchange fees are paid back to the user as coins are “mined” throughout the transaction process. Using this concept, users are rewarded for exchanging currencies with each other in order to mine more coins, which is commonly done by bots.
The goal of certain exchanges is to attract more trading activity by charging exceptionally low costs. Often, these fees change, are graded differently by account type (such as market makers or bots) and transaction volume, and are not evident to the user or to CoinMarketCap.com.
Wash Trading/artificial Volume
There are occasions when projects are told by exchanges to maintain a specific volume in order to keep their listings current. Market creation services and bots to trade the project’s own coin are frequently employed to achieve this goal.
It’s no surprise that coping with these ever-evolving models is a daunting task. There is no guarantee that any of the exchanges listed on our site will reply or comply with any specific criteria, but we must continue to display consumers the best approximation of pricing and volume based on all the data we have available.
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The emergence of new models, such as transaction mining, necessitates the development of new techniques for calculating volume. It’s a double-edged sword because they’re providing increased liquidity in the way that users are trading on the platforms.
Transparency of data is of the utmost importance.
Despite the fact that we do our best to verify facts on our site, we do not censor or police others. If we are operating in an open environment, we feel that the ideal approach is to over-produce data and allow people make informed decisions about how to utilise it.
It’s important to note that these worries are legitimate and have a significant impact on the community and people’s perceptions of exchanges.
CoinMarketCap used to have volume requirements for exchanges in order to identify the most popular exchanges. Since we get hundreds to thousands of requests per day to list new exchanges and coins, this was a necessary but not sufficient criterion. A basic and easy-to-understand criteria for exchanges to determine whether or not they should be included on CoinMarketCap was not intended as censorship, but rather as a means of determining whether or not an exchange should appear there.
We’ve decided to lift the volume requirement for exchanges because of the recent developments in the exchange ecosystem and the concerns raised by our community. In force since Monday, this has been in place.
A large part of the reason for removing the cap is to dispel the perception that volume is the only condition for listing on CoinMarketCap. Before adding a new coin or exchange to CoinMarketCap, our team thoroughly investigates it to make sure it is legitimate, has actual support, and is not a scam. CoinMarketCap strives to accurately represent all exchanges and coins/tokens on the platform.
Improved Functionality to Help Consumers Understand Information Exchange
As a next step, we’ll be gradually revising our exchange rankings in keeping with the principle we’ve adopted: consumers should have the freedom to explore and utilise data however they see fit. Our new measures, such as 7- and 30-day volume for each exchange
will also be introduced, so that consumers may use these metrics to analyse the traffic on the exchange on their own.
As you may have guessed from the challenges we’ve mentioned above, this is an incredibly difficult problem that requires everyone in the bitcoin community to solve. They can join in the effort to raise the standards for data integrity as we anticipate more transparency from exchanges and projects.
To reiterate, our philosophy is to present as much information as possible to our consumers, so that they can develop their own conclusions and interpretations – without introducing our own bias into the mix.
As a group, we’re working to identify and resolve data errors, and we welcome your input. If you have any suggestions or requests, please feel free to use our form to let us know. It can take a long for us to respond to all of the requests we receive because we get so many in a day!
Jonathan Herrod is a content writer who enjoys writing about technology, video games, and other topics. The author of informative articles that are well-researched and written with attention to detail has been writing professionally for nearly three years and specializes in the creation of well-researched and written attention to detail articles.