Altcoin News: CoinMarketCap Developing a New Liquidity Assessment System

August 29, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

CoinMarketCap, a popular observer of cryptocurrencies and exchanges, plans to launch a new liquidity assessment system on November 12.

The statement was made during the first roundtable of the Data Accountability & Transparency Alliance (DATA) organization last night, which includes several cryptocurrency exchanges and blockchain projects. Among the DATA participants, the largest cryptocurrency exchanges stand out: Binance, Bittrex, Huobi and OKEx.

During the round table, CoinMarketCap representatives voiced three key issues that require discussion among the alliance members:

The use of liquidity metrics, self-reported data and a unified crypto asset ID database.

The launch of the service for self-data transfer is scheduled for October 14.

The problem of liquidity assessment arose against the backdrop of aggravation of laundering trade, which prevents CoinMarketCap from reflecting real data. Representatives of the portal note that the use of liquidity as a metric may encounter a number of difficulties since such a system is changeable and cannot be quantified.

However, the preservation of the metric, which is based on the trading volumes of cryptocurrency exchanges, requires its substantial processing, so that dishonest sites do not have the opportunity to falsify data.

Thanks to the use of an independent data transfer system by trading platforms, it will be possible to achieve increased transparency in the cryptocurrency space. Exchanges will be given decals depending on the amount of data transferred. Due to this, there will be an incentive to transfer as much additional information as possible, for example, requirements for customer identification, location of offices or the presence of single application books with other trading platforms.

Ben O’Neill, Director of Business Development and Operations for the Messari analytic platform, noted that exchanges practically do not remove dead or dishonest projects from their trading platforms. He noted that it is necessary to develop a system in which third parties can influence projects, urge them to honesty, threatening to apply “real negative consequences”.

CoinMarketCap has been trying for a long time to combat the falsification of transmitted data. Earlier, the aggregator stated that it would remove cryptocurrency exchanges from its rating if they did not join the data disclosure initiative.

Author: Marko Vidrih