Coinmarketcap to Exclude Cryptocurrency Exchanges from Data Calculation
Introduces Data Accountability & Transparency Alliance (DATA)
Coinmarketcap who is the top Cryptocurrency market indicators tracker has announced that it will remove cryptocurrency exchanges from its data feed if they do not adhere to its mandatory request to supply data by the mid of the year.
This pronouncement was made during the celebration of its 6th Anniversary via a blog post. In this post, the Price Tracker also announced that there are several major initiatives they have been working on for some months by the Price Tracker which included amongst others Coinmarketcap Data Accountability & Transparency Alliance (DATA).
Cryptocurrency has made a remarkable rise globally and an explosion in the combined market capitalization running into hundreds of billions of dollars such that some countries in the world like south Korea had abnormal prices . Adding to the need to promote greater transparency, accountability from projects in the cryptocurrency space. To differentiate themselves through enhanced disclosure, the initiative will seek to empower users to make more informed decisions and to providing a means for projects.
The objective of Reviewing, aligning and enhancing reporting standards across the cryptocurrency industry, according to Coinmarketcap is what the Data operates on and also the Identification of gaps, proposal of strategies and measures to enhance data accountability and transparency.
It is also worth mentioning that in January 2018, according to CoinmarketCap tweets in January 2018 they said the South Korea data was excluded due to “ extreme Divergence in prices from the rest of the world and limited arbitrage”. According to a report by Bitwise, most of the cryptocurrency exchanges reports fake volume. The report indicted Several of the perceived top exchanges in cryptospace with top exchanges were all indicted according to the report, Binance offering to help resolve this issue
Working on the need to promote transparency, Coinmarketcap had gone further in addressing the ways DATA will be employed in the following phases;
The first phase which is centred on Exchanges mandatory seeking to collect trade and order book data from Exchanges and this will be effective as from the 14th of June, 2019. The data will allow the analysis of liquidity, order book depths, spread etc via API
The second phase also focuses on Cryptocurrency Exchanges that will allow users make more rational financial and non financial decisions through more in depth data. This phase will also allow the provision/collection of data on Exchange cold/hot wallets addresses, Proof of Solvency/Reserves/Liabilities. Users will also see live data on market trading pair status as well as Historical trade data too.
Coinmarketcap will definitely remove Exchanges which do not comply with the provision of these data from their calculation.
The last phase will focus not only on exchanges but also on crypto projects. This will further provide more data for transparency and accountability. In this phase,the Cryptocurrency project will be reporting data on themselves as a result of Coinmarketcap all to the Crypto Data Tracker.
It is expected for projects to report data on industry/sector, blockchain platform (Ethereum, Neo, BitcoinCash etc), Consensus Algorithm (POW, POS dPOS), Team information, User base breakdown (Targeted and Existing) and so on.
On cryptocurrency exchanges, coinmarketcap expect exchanges to self provide data/information on Legal & Industry compliance requirements, cybersecurity measures, Account Freezing/Termination policies, KYC Policies, Fee structures etc, through the Coinmarketcap Data Accountability & Transparency Alliance (DATA) initiative.
To increase this transparent, accountability and also to provide and increase more clarity on some of the unusual issues in the crypto space, some top cryptocurrency Exchanges such as Binance, Bittrex, Bitfinex, OKEx, Huobi, Liquid, UpBit, IDEX, OceanEX, Gate.io, Kucoin, HitBTC already joined the alliance to lead in the transparency for these data to be collected and displayed for all to see on the Top Crypto financial tracker.
If you want to be listed, then get to know all about this DATA
Credits: cryptotvplus, Bitwise reports, Coinmarketcap.JOIN OUR COMMUNITY