Has Top Cryptocurrency Website CoinMarketCap Completely Given Up On Data Accurac

[sirty143]

Has Top Cryptocurrency Website CoinMarketCap Completely Given Up On Data Accuracy?

This year, two major research reports from cryptocurrency companies have concluded that between 65% and 95% of reported crypto trading volume is fake. But if you browse the ranking of digital asset trading platforms on CoinMarketCap, the most popular data-aggregation site, it looks like the website’s owner never got the memo. Of the top 25 of the 260 exchanges listed on the site, more than 75% have been suspected of reporting fake volume.

CoinMarketCap’s first response to these findings, after the Bitwise report about fake volume in March, were tweets acknowledging the concern.

https://twitter.com/CoinMarketCap/status/1111525757715664897

The company has a 40-person team with six data scientists, and Forbes estimates it earns between $20 million and $30 million a year in ad revenue. CoinMarketCap CEO Brandon Chez says fake trading volume “is an important issue, and we’re actively trying to solve it.”

But four months after Bitwise’s blockbuster report, and three weeks after Forbes reported on BKEX, an exchange that simply replicates another’s transactions seconds later, CoinMarketCap seems to have done very little to fix the problem.

Source: Forbes

[MintDice]

I seriously doubt they have given up. It's the integrity of the website. If they lose that, they will lose business. It might be harder to manage as things become unwieldy though, that's possible.

[Gravatai]

Coinmarketcap never differed in accuracy of indicators, so some similar services appeared with similar functionality, but with more accurate data that they take from those exchanges that were not seen in an artificial increase in trading volumes. Why has the Coinmarketcap team not taken any action to provide more accurate statistics? Apparently it is profitable for them and they get money from those exchanges that are listed on their service or the reason is different.

[Bobcrypto]

I think this is a serious concern because coinmarketcap could be giveing some of these exchanges certain soft landing because they also pay fees to coinmarket. It very clear that many of these exchanges does not give accurate data to coinmarketcap site or may that there are mutual understanding between coinmarketcap some of these crypto projects.

[KORE - DEV]

There are about 20-40+ Chinese and other exchanges that are now gaming the CoinGecko system of normalized volume.
Some even offer accounts with no fees to pump up their "real" volume.
Seeing an exchange come out with their new release adding 60 languages an increase their volume from 400-600k to 6million in a week is ludicrous.

[Goodcat49]

Coinmarketcap never was not accurate, I heard news about fake exchanges volumes there 2-3 years ago.

And yes - Coingecko may be even better, with more information and more exchanges.

[KORE - DEV]

Coinmarketcap never was not accurate, I heard news about fake exchanges volumes there 2-3 years ago.

And yes - Coingecko may be even better, with more information and more exchanges.

CoinGecko had devised an acceptable method (at the time) do distinguish between wash trading and fake volume computing it with visited to the exchanges websites.
Now all these "fake exchanges" and some in the top 20 have figured ways around it with 0 fee accounts.
I dont doubt even some exchanges we think are all legit are doing the same.
There are still a few ways to determine which are fake and which are real.
You can watch the trades go by in the spread and thrown up in a split second.

MikeMike