Coinmarketcap (CMC), the leading digital currency data provider, has made further changes to its ranking system to determine when cryptocurrency exchanges report inflated volume on its platform. The Coinmarketcap update comes in line with its mission of providing transparency for digital currency market data.
Coinmarketcap update targets fake volumes reported by exchanges
Introduced on Friday, the latest Coinmarketcap update dubbed ‘Confidence’ metric will reportedly flag dubious exchange volumes on its platform, using machine-learning algorithms. The new metric will evaluate every bit of market report on the platform to ascertain whether “the volumes reported by exchanges are inflated, and to what extent.”
Additionally, CMC rolled out a default ranking system to take the rank of market pairing on its platform, which will take the place of the current metric of volume for default sorting. Per the report, Coinmarketcap intends to deploy a single algorithm that will consider several other factors, like Web Traffic Factor, Liquidity Score, etc.
Controversies with Coinmarketcap “web traffic factor”
The latest Coinmarketcap update builds on the previously launched functions on the platform, which spurred controversies that they were meant for the benefit of Binance. The leading cryptocurrency exchange recently acquired the data platform.
Specifically, the controversies began with the introduction of “web traffic factor” earlier in May. This Coinmarketcap update sought to examine the activity of users on crypto exchanges, bounce rate, rankings on search engines, unique visitors, and other website-related activity.
However, the parent firm, Binance was criticized over the development, given that it occupied the top spot from the metric. Meanwhile, Coinmarketcap had rejected such a metric in the past, before its acquisition by Binance.
Coinmarketcap has been making a series of changes in its system, which supposedly aims to ensure the accuracy of data. As of May 22, the ‘adjusted volume’ metric on Coinmarketcap was removed. This metric excludes volumes from derivatives, paring with transaction mining, and more.