The Cryptocurrency market data source website CoinMarketCap (CMC) has announced to make changes in the ranking order of member exchanges after research found evidence of fake exchange volume. The market source announced its upcoming changes through its social media on March 25.
Last week the research wing from cryptocurrency index fund provider Bitwise revealed that CMC hosts mostly fake volume statistics. The firm reported that the fake volumes in turn misleads investors and boosts the profile of affected coins.
The industry’s best ever tracking service for the market capitalization of Bitcoin [BTC], altcoins and exchanges has noticed the warnings from the research wing. Bitwise has sent an application to United States regulators to launch a Bitcoin exchange-traded fund [ETF] in which the warnings are noted.
CoinMarketCap’s global head of marketing, Carylyne Chan, told sources on how the data source is making changes in the site’s rankings,
Recently two exchanges with fake trading volumes both overtook Binance on CoinMarketCap’s adjusted volumes rankings, a section of the site which helps to restrict artificial volume and wash trading market manipulation.
Recent report from the startup The Tie finding is warning the bitcoin and cryptocurrency trading volume on some of the world's largest exchanges may not be "genuine." 90% of the volumes shown by the exchanges are questionable. The researchers compared the average trading volume of $600 weighted per user visit at the major crypto exchanges including Coinbase Pro, Binance, Kraken and Gemini.
The data researcher analyzed internet traffic on the top 100 crypto exchange websites and discovered 75 of the trading volumes on the exchanges were more than double expected and 90% exchange volume would be false.
CoinMarketCap has noted the crypto figures from the research report conducted by the startup-The Tie on various trading platform and reported fake volumes.