One of the largest major sources of data is in the latest cryptocurrency news for a new update. We are talking about CoinMarketCap (CMC) which recently set the target date of November 12, 2019 – which is when it will announce a new liquidity ranking system.
CoinMarketCap first revealed the news during the first virtual roundtable which was held yesterday (August 27) of the Data Accountability & Transparency Alliance (DATA) which is a group of exchanges and projects in the crypto space which was formed in May 2019.
Currently, DATA counts companies including Binance, Bittrex, Huobi, OKEx and others. The new liquidity ranking system was presented during the DATA roundtable – when the three topics for the alliance’s general consideration were listed. They included:
- the use of liquidity metrics
- self-reported data
- unified crypto asset ID database
As many best cryptocurrency news sites reported, a dashboard for self-reporting data will also be in the launch on October 14, 2019. Basically, the idea of using liquidity metrics to rank exchanges arose mainly because of the problems associated with wash trading in the current volume rankings on the site – as CMC’s presentation noted.
Aside from the new liquidity ranking system, the CMC presentation outlined that using liquidity as a metric may prove problematic, as it is a non-numeric and constantly changing metric that is difficult to record and report.
Still, CMC is a leader in the Bitcoin and altcoin news segment from a ranking point. The company underlined that if they retain the volume metric, they will also need to redesign it so that it can’t be gamed easily.
When it comes to the second point which is the self-reported data, it was mainly brought up to incentivize transparency in the crypto space. The CMC presentation basically brought the idea of receiving badges as rewards for the number of data points that an exchange reveals, referring to this as a carrot for people which want to fill out more information in a way similar to LinkedIn’s ranking system.
The new liquidity ranking system is definitely a positive update. In May this year, CMC stated that they would begin removing exchanges from their site if they fail to provide mandatory data starting from June 2019.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post