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CoinMarketCap Works With Crypto Exchanges To Prove They Have Real Trading Volumes

ยท 02 May 2019 in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

CoinMarketCap is taking some measures in order to have better information for crypto enthusiasts and investors. The platform, which aggregates data from different exchanges and films, provides information about the price of virtual currencies and the trading volume registered by crypto exchanges around the world, among other things.

CoinMarketCap To Remove Exchanges That Do Not Provide Enhanced Data

The cryptocurrency data provider CoinMarketCap wants to improve the information that it gives to crypto enthusiasts and investors from all over the world. The company has announced in a recently released blog post that they will be launching a new alliance called the Data Accountability & Transparency Alliance (DAA). The main intention is to provide enhanced information, transparency and also accountability about the projects they present on their website.

It is worth mentioning that a few months ago, Bitwise Asset Management released a document in which they claimed that 95% of the trading volume on unregulated cryptocurrency exchanges is likely fake. There have been several digital currency exchanges listed in CoinMarketCap that have experienced wash trading activities. This is something that has harmed the credibility of the statistics and numbers shown by CoinMarketCap.

There are already some exchanges that decided to join the alliance. As per the report, some of these exchanges include Binance, Bittrex, OKEx, HitBTC, KuCoin and many others.

CoinMarketCap will also be requiring exchanges to provide mandatory API data. The information provided by these exchanges should include live trading data and live order book data. This is very important for the company to be able to provide better statistics for investors and individuals interested in the virtual currency space.

CMC explained that exchanges that do not provide this information will not be included in the price table that they currently have running. At the moment, exchanges have a 45-day grace period in which they are able to send the required data. The changes will come into effect as soon as on June 14, 2019.

A short time ago, CoinMarketCap introduced new features that include Block Explorers, a Shop, an API Revised Plans and Mobile Apps.

Some of the exchanges in the market have been accused of performing wash trading activities in order to increase their position in CoinMarketCap. These platforms aimed at increasing liquidity in order to attract more investors rather than wait until they would have rea accounts.

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