CoinMarketCap, the go-to source for reliable information on cryptocurrencies and exchanges volume for the crypto industry, has responded to growing concerns for fake volumes and other manipulations.
In a recent blog post, CoinMarketCap addressed the issues and announced it is changing its listing requirements for cryptocurrency exchanges. First off, the site has removed the volume factor as a main requirement for listing “due to the recent changes in the exchange landscape, and the concerns aired by our community.” This has come into effect last Monday.
“The removal of the limit is partly to combat the impression that volume is the only requirement that is necessary for listing on CoinMarketCap,” the site said in an official blog post. “In fact, our team spends time researching new coins and exchanges to ensure that they are real projects, backed by real teams, and are not fraudulent, before putting them on CoinMarketCap.”
Additionally, the site is introducing new filters and will progressively change the ranking methods. CoinMarketCap also plans to add more levers and toggles so users can filter the exchanges most relevant to them. There will also be new metrics, such as 7-day and 30-day volume, and the establishment date of each exchange, so that users can use those as a way to evaluate for themselves the consistency of the volume on the exchange.
“In this way, by introducing different ways to look at exchanges and their respective features, the ranking system will be able to take into account various expectations that users have and help them view and digest exchange information better,” CoinMarketCap said.
The past few months saw several brand new cryptocurrency exchanges shoot up in the CoinMarketCap rankings. Coinsuper, for example, rose from the 16-th to the Top 5 within a month, temporarily displacing giants like Binance who usually sit at the top spots.
Other examples include Fcoin, a virtually unknown until recently crypto exchange, that at the time of writing, is ahead of OKEx, Binance and Bithumb.
All those strange and unexplicable moves raised the suspicions of the crypto community of fake volumes and manipulations. So much so, that authors of the blog CryptoExchangeRank did a research of the “phenomenon” of BitForex, FCoin, and CoinEx, reaching a conclusion that BitForex was pumping its volumes using wash trade.
Whether or not the new CoinMarketCap requirements and algorithms will put an end to this type of manipulations, remains to be seen.