In line with a recent ‘update‘ published on social media, leading global crypto-currency market information resource CMC [CoinMarketCap] has assured to re-arrange how it ranks member exchanges after analysis found overwhelming proof of fake volume.
CMC is the renowned industry’s best-known monitoring services for the market capitalization of Bitcoin [BTC] and altcoins, as well as for the activity on exchanges trading them.
As ‘reported‘ earlier last week, the analysis from cryptocurrency index fund provider ‘Bitwise’ revealed that CMC hosts entirely faux volume statistics. This in turn deceives investors and inflates the profile of affected coins, Bitwise explained within the report.
CMC has appeared to heed the warnings pictured within the analysis, that Bitwise sent to U.S. regulators for thoughts as a part of its application to launch a Bitcoin ETF [Exchange-Traded Fund].
“We are taking note of all our users’ feedback, and that we are working hard to feature a suite of new metrics so that users can get a clearer image of exchanges and cryptocurrency on the website,” executives added on Twitter.
Speaking to ‘Bloomberg‘ in the meantime, CMC’ global head of marketing, Carylyne Chan, offered a glimpse of how the website’s rankings would amend within the future.
“For instance, if an exchange with low traffic has $300 Mln volume and just 5 Bitcoin [BTC] in its wallet, users are able to draw their own conclusions without the necessity for us to form arbitrary judgment calls on what’s ’good’ or ’bad,’” she explained.
CMC had antecedently caught the attention of cryptocurrency figures when previous analysis from commerce platform ‘The Tie‘ likewise casted the spot-light on exchanges’ reported volumes.
Moreover, Changpeng Zhao, chief executive officer of Binance exchange, ‘argued‘ a coin hiking up the site’s rankings alienated skilled investors, who would automatically assume its size was suspect.
Even last week, two exchanges with suspect commerce volumes both briefly ‘overtook‘ Binance on CMC’ adjusted volumes rankings, a section of the website that attempts to separate ‘artificial volume‘ along with the wash tradings.
Chan however, didn’t provided a timeframe for implementing the new changes.