CoinMarketCap.com has introduced a new ranking system for all trading pairs listed in the cryptocurrency data aggregator industry, helping users to make better decisions about where to trade. It also introduced a new indicator that reflects the confidence that CoinMarketCap has in the trading volumes reported by a participant exchange for a specific pair.
Rather than a single metric rating system, CoinMarketCap is transitioning to a combined system that covers more than 22,000 market pairs spanning more than 5,500 cryptocurrencies. The instruments will be algorithmically scored in three aspects: reported volume, liquidity and an estimate of the user base of an exchange.
Prior to the new system, which will become the default for all listed pairs, the ranking was sorted by reported volume only, after removing the "adjusted volume" metric for simplicity.
CoinMarketCap is also implementing a de Confidence Indicator ’, which is shown in three bands: High, Moderate and Low. The associated tag is Based on a machine learning algorithm that takes all the data that CoinMarketCap has (for example, liquidity, depth of the order book, time and sales, base user size estimated by the web traffic variables) to determine if the reported volume by the exchanges for that pair is inflated and to what extent.
The bands are classified as follows:
High > 75%
Moderate 50% – 75%
"Our new ranking and confidence indicator will use the sophisticated tools at hand to simplify the process of deciding on the best pairs on the market, save time for our users and manage some of the common risks endemic to wandering exchanges," said Carylyne. Chan, Interim CEO at CoinMarketCap.
The new changes come when the cryptocurrency aggregator site has acknowledged concerns voiced by the crypto community over inflated turnover figures. And in an attempt to get a real picture of global cryptocurrency volume, it introduced new features that explain the many variables that affect trading volume and allowed users to filter trading venues accordingly.
Although arguably volume is the most important metric for a cryptocurrency exchange, the most enthusiasts They are aware that prices at CoinMarketCap.com appear biased, and volumes are made 'relatively'.
CoinMarketCap, which was acquired by Binance in a deal worth around $ 400 million, implicitly admitted that some artificial volume inflation and laundering trade is expected in a completely unregulated market. However, what it did not recognize was the magnitude of the fraud.
According to the estimates of ForbesMore than 125 million people trust CoinMarketCap data, allowing the 40-person firm to generate $ 20 to $ 30 million per year in advertising revenue.