CoinMarketCap Stops Volume Requirements for Listing Cryptocurrency Exchange
CoinMarketCap a cryptocurrency data aggregation site has removed volume requirements for exchanges listed on its platform, citing concerns over data transparency and clarity.
CMC clearly wants to remain everyone’s favorite price checking resource, as it has completely removed the volume requirement for exchanges. Before that, the exchange reportedly should have over $50,000 of daily trading volume to qualify for listing with the CMC ranking system. This requirement made crypto exchanges to fake their volumes by employing transaction bots.
Many exchanges have been accused of using questionable methods to increase their volume, whether through exchange-operated market making services or straight-up wash trading.
In a blog post, the CoinMarketCap explained how some exchanges use various tactics to inflate their trading volumes.
Rather than censor such exchanges, though, CoinMarketCap said that it will instead attempt to “over-provide” on data and tools to analyze it, giving individuals the ability to reach informed conclusions on their own.
The CMC further explained a number of ways used by exchanges to make volume look like more than its actual figure. This includes employing market-making services and bots to trade their own coin, charging extremely low fees to encourage more trading activity and rebating users with the exchange’s coin when transactions are made.
After going through CoinMarketCap has made a statement that it will attempt to ‘over provide’ on data and tools so that the individuals can analyze the system and come to a verified conclusion.
“Even though we try our best to verify the data with the exchanges on our site, we are not in the practice of censoring or policing others. In an open ecosystem like the one we are in, we believe the best policy-that we closely follow- is to over-provide on data and let users make their own choices about what to do with that data.”
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