Media

CoinMarketCap updated ratings …

Navigation

Coinmarketcap.com adds the new rating system

CoinMarketCap updated ratings ...

CoinMarketCap has updated ratings in favor of Binance, but it’s fair
CONTENT

  • CoinMarketCap Updates Spoke Outrage In The Cryptocurrency Community.

  • Service accused of deliberately covering up fraudulent activity on Binance.

  • CoinMarketCap denies bias allegations.

  • Binance CEO claims CoinMarketCap team acts independently

International consortium of news organizations developing transparency standards.

CoinMarketCap innovations raise suspicions about the good intentions of the implemented updates.

Article updated on May 19, 2020 with comments from Binance CEO Changpeng Zhao in response to accusations

CoinMarketCap (CMC) web monitoring service has removed a metric indicating that cryptocurrency exchange Binance had a high level of money laundering. The first to notice this was Decrypt..

CoinMarketCap updated ratings ...

The day after Binance acquired CMC, the exchange climbed to 15th on the list of the top 100 trading platforms. Binance had $ 6.7 billion in “declared exchange volume”.

At the same time, the “Adjusted Exchange Volume” indicator, intended for a more accurate determination of the trading volume, indicated an amount of $ 2.1 billion..

Suspicious activity

After updating the metrics, the indicator disappeared. CoinMarketCap’s new head Carilyn Chan says many are wrong about the adjusted volumes.

“Our adjusted metric only adjusts, that is, removes, the volume coming from markets without commissions or that are mining transactions. This has nothing to do with suspicious trading activity, “Chan said..

Money laundering is one of the types of market manipulation. For example, you may sometimes notice that identical orders for the same amount appear on the exchange at the same time of day. Such automatic pseudo-operations are money laundering.. 

Zhao is not to blame. Nearly

In social networks and specialized media, a flurry of criticism and accusations of bias and manipulation of ratings fell on the exchange. In response to this, the head of Binance published a lengthy blog post in which he tried to explain the essence of the relationship between the breeze and the CoinMarletCap portal, which recently became part of the Binance ecosystem..

Zhao said that all Binance teams operate relatively independently of each other and work towards their own goals. He also stressed that everyone makes independent decisions, but at the same time admitted that there is a certain relationship between them, and he personally can influence their development vector.. 

Commenting on the situation with the ratings, he said that the CoinMarletCap team received the task to eliminate the problem with fake volumes in a short time and independently developed a new calculation method.

“The team informed me that they will combine the three rankings into one using web traffic as a common denominator. I didn’t know and didn’t elaborate on the details of calculating web traffic. A day later, they launched a new rating “.

In addition, the new scoring formula is only an intermediate stage in the deployment of the system to deal with the bloated volumes. New metrics will be added soon, according to the head of Binance, although it is hardly worth expecting that all of them will be perfect or protected from hacks..

CoinMarketCap updated ratings ...

“In any case, Binance actually has the highest trading volumes (almost always), and the exchange ranks highly on other criteria as well,” he added..

Trust issue

Recently, the head of Binance, Changpeng Zhao, reported on his Twitter page about the exchange’s record trading volumes. In early May, due to a short-term pump of the price of bitcoin, Binance, according to Zhao, recorded a record trading volume of $ 16 billion..

At the same time, many in the comments under Zhao’s post felt that the exchange was manipulating numbers in order to attract new customers..

Back in March, the editorial staff of BeInCrypto wrote that Zhao announced that he would not allow the price of bitcoin to fall to $ 0. In fact, the head of Binance admitted his intention to donate his funds to artificially support the bitcoin rate.

At the time of this writing, the bitcoin rate BTC / USD is fixed at $ 9445.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

Similar articles

Similar articles