CoinMarketCap changes exchange ranking system! CoinMarketCap changes exchange ranking system a month after it was acquired by Binance for $400 million dollars. The new system puts Binance first.
According to CoinMarketCap, the new system ranks exchanges by web traffic. Following Binance is Coinbase Pro and BitMEX.
“Listen-to-community time. What would you like to see improved, added or removed from CoinMarketCap?” Binance CEO Changpeng Zhao tweeted on April 22.
“We listened. Coinmarketcap updated exchange rankings by incorporating web traffic factor. Checkout the update rankings at URL below and let us know what you think,” Zhao tweeted yesterday.
Carylyne Chan said that CoinMarketCap is an independent entity and that CZ’s Twitter presence and feed was used to gather feedback. Those factors were factors in their research process.
“We do not update algorithms or rankings to suit anyone’s agenda, this runs completely counter to the history and value of CoinMarketCap,” she added.
Binance acquires CoinMarketCap on April 3rd – Binance was listes 15th on their site. The site listed Binance’s volume as $6.7 billion, but after removing suspicious activity, the corrected number was $2.1 billion.
“Adjusted volume is a way to view all exchanges, excluding data that is skewed (too different from other exchanges) or potentially suspicious. As such, you might think of adjusted volume as a way for us to provide a more nuanced presentation of the data, and reported volume as plainly what the exchanges provide to us through their API,” CoinMarketCap explained.
The metric used by CoinMarketCap is now gone. Binance, therefore, reigns supreme.
Inflating numbers on exchanges is a lucrative business. Alexey Andryunin, a 20-year-old sophomore student at Moscow State University, charges $15,000 to his 30 clients to fake trading volume.
Exchanges will do anything to get the exposure of a top exchange. Many will even buy sponsored positions on listing/news sites – which in of itself forwards the reputation that crypto has garnered of being the “wild west”.
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