The popular crypto data tracker CoinMarketCap is instituting changes in light of what it called “concerns” over fake volume figures.
The announcement followed a post on CryptoExchangeRankings, which tackled the question of how relatively new exchanges were able to move up CMC’s volume rankings.
“The issue of fake volumes on crypto exchanges is like a UFO: some people claim to witness it but there is no evidence and metrics to prove its existence,” the blog wrote.
The evolution of new models such as transaction mining also means that there needs to be new ways to account for volume.
That being said, she wrote, “we understand that these concerns are valid and have implications on the community and the impressions that people have about exchanges, even more than we are traditionally used to.”
In early 2019, Bitwise published research suggesting up to 90% of crypto trading volume was fake. Almost a year later, a new study by Chainalysis shows that the issue of fake volume persists.
Markets and Prices Coinmarketcap (CMC), the web’s most popular cryptocurrency tracker website, has responded to accusations that it is implicit in supporting wash trading. This week, a platform called Crypto Exchange Ranks published detailed allegations of how CMC incentivizes exchanges to report fake volume.
Coinmarketcap (CMC), the web’s most popular cryptocurrency tracker website, has responded to accusations that it is implicit in supporting wash trading. This week, a platform called Crypto Exchange Ranks published detailed allegations of how CMC incentivizes exchanges to report fake volume.
Bitforex, a cryptocurrency exchange that scarcely scraped the top 100 by trading volume until recently, has been accused of generating false trades on a mammoth scale. Crypto Exchange Ranks, which pulls in open source data from exchange APIs, has published a report in which it accuses Bitforex of creating fake volume and Coinmarketcap (CMC) of […]
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