Crypto world proud of CMC and CoinGecko for fighting against fake volume dataMay 19, 2019
Things seem to be falling into place finally for the crypto industry. Credit largely goes to CMC and CoinGecko for being prompt with stern actions against illicit ventures. No wonder, the crypto world is proud of both of them.
The month of March was certainly a black month for the entire crypto world. In the middle quarter of the month, leading crypto index fund company Bitwise sent a sensational report to SEC mentioning false representation of trading volumes by crypto exchanges (unregulated). According to the report, 95% of reported BTC spot volume featured on CMC is simply fake. Bitwise’s study also revealed that only 10 exchanges on CMC are truthful with their figures.
CMC was prompt with counter-strike
CMC has duly acknowledged about the validity of Bitwise report. Not only that, the company has announced to bring new metrics that can effectively combat attempts of fake volume data. As per the sources, from now on, CMC would keep tab on traffic from exchange platforms, hot & cold wallet balances and liquidity indicators. This will enable users to assess ratio of the trading volumes & actual liquidity, all by themselves- as well as draw informed and accurate conclusions.
CoinGecko launches “trust score” for ranking exchanges
CoinGecko has recently launched “trust score” for ranking exchanges that will help users to find the most credible exchanges easily. The score system will bank on a mix of different analytics methods to attain a realistic view of the entire market.
This new method is designed to combine virtual traffic analysis from SimilarWeb and median sum of trading volume of users from ten trustworthy exchanges. These 10 exchanges are the ones that have received certification of true data on Bitwise report. After calculating daily trading volume on each exchange, CoinGecko would compare it with median value for those 10 exchanges (the benchmark). If the total volume seems to be lower compared to “benchmark”, it implies the crypto exchange is not showing honest data.
CoinGecko will further analyze order books of exchanges.
Thus, the “trust score” will be determined based on the combined study of trading volume as well as web traffic & order book. There will be 3 color-coded sections- Green for “good”, Yellow for “fair” as well as Red for “poor”.
Added to CoinGecko and CMC, another crypto platform is fighting against circulation of fake news in the crypto scene. Named “The Currency Analytics” (TCA), the site is a top crypto media site founded by leading crypto expert Sydney Ifergan. TCA has recently launched its own crypto token called “TCAT” which is aimed to replace fake crypto news with real authentic and impartial news.