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CoinMarketCap Introduces New Tool to Fight Manipulation

 
CoinMarketCap Introduces New Tool to Fight Manipulation
Breaking News / Crypto Market
  • CoinMarketCap has been infected by manipulation since its early days.
  • The cryptocurrency data source recently revealed an introduction of a handy new tool that will provide “real trading activity”.
  • This new tool from the firm looks to help users find out the most liquid markets in the crypto industry. 

The leading cryptocurrency data source - and one of the favourites we use here at CryptoDaily - CoinMarketCap has been infected by manipulation since its early days. This has resulted in CoinMarketCap making waves towards a crypto market that could one day be free of manipulation. 

The cryptocurrency data source recently revealed an introduction of a handy new tool that will provide the “real trading activity” of most of the cryptocurrency platforms in the space.

CoinMarketCap is launching a new metric dubbed Liquidity that aims to combat fake trading volumes in the cryptocurrency industry. Liquidity will serve as the default criteria for ranking cryptocurrency pairs and exchanges.

Manipulation

CoinMarketCap is getting ready to release a new tool called Liquidity that is going to focus on fighting off fake trading volumes in the cryptocurrency space. 

This new tool from the firm looks to help users find out the most liquid markets in the crypto industry. 

Given that there are over four thousand digital assets listed on the platform, transparency can get a bit clouded and the company are well-aware of this. Therefore, as per CCN, “liquidity takes into consideration order-book depth changes and distance from mid-price.”

Carylyne Chan, Chief Strategy Officer at CoinMarketCap said:

“We believe our adaptive methodology will make our metric very difficult to ‘game’ as orders would need to be placed close to the mid-price, or risk being counter-productive to the Liquidity metric scoring.”

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

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