Altcoin News: CoinMarketCap Launches Alliance against Fake Exchange Data

May 2, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The CoinMarketCap crypto data platform is working with several major exchanges to provide more transparent market data in the future. This is likely to be a late reaction to a report by Bitwise, according to which most exchanges falsify their trading volumes.

In March, Bitwise, a provider of cryptocurrency index funds, claimed that 95 percent of Bitcoin’s reported total trading volume was counterfeit and that the true Bitcoin (BTC) market is essentially represented by only ten different exchanges.

CoinMarketCap’s data suggested that the average daily volume of the Bitcoin market was about $6 billion. But Bitwise explained that the actual average daily Bitcoin trading volume was only about $273 million.

In response to the Bitwise report, a new data platform called OpenMarketCap was set up, which relied only on information from “trusted” exchanges.

CoinMarketCap, the leading platform for information on cryptocurrencies and exchanges, aims to increase the quality of its data. For this purpose, a new association called Data Accountability & Transparency Alliance (DATA) was formed. In this framework, ways will be discussed of how to solve current problems in collecting cryptographic data.

CoinMarketCap announced the alliance on Wednesday in a long blog article celebrating the six-year anniversary of the platform.

Author: Marko Vidrih