Major cryptocurrency tracking website CoinMarketCap has updated their listing policy for exchanges. The website has removed the volume requirement that used to be necessary for the listing of trading platforms. In addition, the CMC team announced more features aimed at fixing misleading crypto exchange rankings. These include levers and toggles based on additional criteria, such as a fee model of preference or an existing registration.
All of the new measures would follow the company’s vision of the data transparency. Rather than carrying out practices of censoring and policing other projects, the CoinMarketCap team has formulated its principle in over-providing data and delegating the users with freedom of making a more informed choice.
“Our philosophy is to provide as much information as possible to our users, so that they can form their own conclusions and interpretations – and not introduce our own bias into that mix.”
Furthermore, the service has added 7-day and 30-day trading volume and the establishment dates for each exchange listed. Therefore, it is possible to track the consistency of the volume progressions and detect unusual swings in trading activity.
The changes have arrived as a response to a barrage of criticism from media and the cryptocurrency community. The concerns were linked to the emergence of the exchanges adopting low-fee or transactions mining fee models. The low-fee model incentivized users to inflate their trading volume in order to receive lower per-trade fees. The transaction mining fee model has been the latest novelty that made a number of newcomer exchanges jump swiftly onto the top of the list.
Similarly, several exchanges have been accused of manipulating their trade volumes through wash trade and exchange-operated market making services. Namely, one of the newcomers from the top-10 by daily volume list, BitForex faced allegations of wash trade from CER, a cybersecurity analytical firm. Previously, another major crypto exchange, OKex, was accused of faking trading volumes.
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