CoinMarketCap Show Off New Method For Fighting Off Fake Data

A lot of you will use different websites and apps for keeping track of the price and value of the cryptocurrency market including the top five cryptocurrencies like Ripple, Ethereum and Litecoin. CoinMarketCap is one such price tracking website and it has just shown off its new ranking method for asset liquidity, to officially launch on the 12th of November this year.

The news broke at the first-ever DATA (Data Accountability & Transparency Alliance) roundtable, which occurred this week on the 27th of August. CoinMarketCap went onto announce that in mid-October, a new page will be launched that will allow supported exchanges to report their data autonomously. 

DATA was actually announced in May and was designed by CoinMarketCap to be an alliance that looked to “greater transparency, accountability, and disclosure from projects in the crypto space”. During this time, CoinMarketCap warned that all cryptocurrency exchanges who failed to submit the needed information would be left out of its ratings. Before the ultimatum finished, a few platforms like Bitfinex, Binance, Bittrex, Huobi, KuCoin and a few others, had already got onto the joined alliance.

The roundtable recently ended but a few key topics were mentioned for deliberation. This included a robust database for easy identification of crypto assets, the specific standards which will be used to measure the liquidity of assets and the earlier mentioned platform for independently posted data.

As reported by ZyCrypto:

“The need for a new method of measuring liquidity seems to have necessitated a heavy wave of falsified data washing through the sector.

With the forthcoming launch in November, CoinMarketCap hopes that it can stifle wash trading to its barest minimum, thereby increasing the credibility of the platform, but also ensuring that no assets or exchanges have any undue advantage over another.”

CoinMarketCap is further hoping to encourage different platforms to be as transparent as possible with their dealings, mainly through the use of autonomous data submissions. 

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!