CoinMarketCap has introduced new indicators to fight the false volume. Earlier, other cryptocurrency exchanges claimed that the platform favors the Binance exchange, which bought CoinMarketCap at the end of March.
CoinMarketCap – new indicators
The leading cryptocurrency data aggregator – CoinMarketCap (CMC) has introduced new indicators. They are designed to limit the impact of false volumes on platform data. The new statistics will apply in determining the position of cryptocurrency exchanges and market pairs.
The changes result from other recently introduced modifications, which turned out to be controversial due to the favoring of the Binance exchange. Binanace bought the CMC platform at the end of March this year.
To flag suspicious volumes reported by exchanges, CoinMarketCap introduced a new “Confidence” metric on May 29th. This indicator uses a machine learning algorithm to examine all data provided by CMC “to determine if and to what extent the volume reported by exchanges is overstated.”
Changes in the ranking of market pairs
CoinMarketCap has also introduced a new ranking system for market pairs that will replace the current volume value during default sorting.
More clearly, CMC will use one algorithm that takes into account the fluidity, network traffic ratio and volume of each pair. CoinMarketCap plans to soon introduce this indicator as the default sorting method also for stock rankings on its platform.
In one of posts posted on the blog platform found that users are confused and do not quite know how to sort market pairs. Many of them requested to fight excessive volumes.
New CMC indicators accused of favoring Binance
On May 14, CoinMarketCap launched its new “network traffic rate”. The criterion is to analyze user activity on the stock exchanges, including the number of page views, unique visitors, time spent on the site, bounce rate and rating by rating sites such as Alexa.
The new owner of CMC, Binance – a leading cryptocurrency exchange, has been criticized for introducing a new function, because as a result it was ranked first in the ranking. A similar idea was considered by CoinMarekCap before and was rejected before the last change of ownership.