Following a report that showed that many of the exchanges on CoinMarketCap were reporting false trading volumes, the crypto market tracker has told exchanges that they would be removed from the platform if they did not provide certain data by June.
In an annual blog post, CoinMarketCap revealed six new initiatives that it would be working on in the near future. The bid to have exchanges share authentic data is a part of the “data accountability and transparency alliance.” Other areas of focus include block explorers, a shop, mobile apps, and a revised plan for APIs.
The team introduces the transparency initiative by saying that it is taking a deeper look into fake volumes,
We are paying close attention to the growing discourse surrounding “fake volumes” of exchanges. This is not a trivial problem to solve, as seemingly innocuous decisions can carry unintended consequences. To add to the complexity, we need to be mindful of the numerous use cases for our data – what some deem to be “fake data” is information in and of itself that can yield interesting analyses, and it is important not to throw the baby out with the bathwater.
Stating that the objectives are to “review, align and enhance” reporting standards and to “identify gaps, propose strategies and measures to enhance data accountability and transparency”, the goal is to better the experience of users,
DATA seeks to promote greater transparency, accountability, and disclosure from projects in the crypto space. This initiative is underpinned by our belief that the provision of additional data points would: (i) empower our users to make more informed decisions, and (ii) provide a means for projects to differentiate themselves through enhanced disclosures.
Several exchanges have joined the alliance, including Binance Bittrex, OKEx, Huobi, IDEX, and Bitfinex, the last of which has been experiencing its own controversy.
CoinMarketCap is by far the most popular tracker for market data and it has come under fire after recent reports showed that many exchanges were engaging in wash trading. The team responded, saying that they were taking issue seriously.