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CoinMarketCap: Serious changes are occurring because exchanges show inaccurate trading volumes

CoinMarketCap offers investors data on prices, trading volumes, market restrictions. The platform recently added a rating metric, Fundamental Crypto Asset Rate (FCAS), based on data provided by Flipside Crypto.

CoinMarketCap, a member of the top 500 sites, has taken steps to offer users better data and tools after he admitted that his statistics are not perfect and that plans to upgrade the system already exist.

Carilin Chan, CoinMarketCap Marketing Director, told Bloomberg that providing comprehensive information is an important priority for the platform:

For example, if a low-traffic exchange has a volume of $ 300 million and only 5 BTC in a wallet, users will be able to draw their own conclusions without having to make arbitrary judgments about what is “good” or “bad”. We want to state that our philosophy is to provide as much information as possible to our users so that they can form their own conclusions and interpretations, and not introduce their own bias in this field.

However, there are a few updates in mind. Planned improvements include liquidity measures, balances on hot and cold wallets, and traffic data.

TIE and Bitwise Asset Management recently released analyzes that suggest that most of the data provided by CoinMarketCap is incorrect.

For almost 90% of all exchanges, the presented trading volumes did not match the estimated trading volumes. TIE measures website traffic and the average transaction per visit, extrapolating this trade, which is prevalent in the market, thus creating a false idea of its size.

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