Many people interested in crypto inform themselves on the website of Coinmarketcap about market capitalizations, daily trading volumes, prices and other data related to cryptocurrencies. The website also indicates where the respective cryptocurrency is currently placed in the ranking. Coinmarketcap has been repeatedly criticized in recent times, especially with regard to the specified trading volume. The provider now responds and changes its ranking criteria.
Table of contents
- Important website in the crypto scene
- Objective representation of the trading volume
- No effective effects on trading volume
- Deletion of fake information
- Analysis options with Coinmarketcap recently expanded
- Rapid consequences
- Little impact on leading cryptocurrencies
- Conclusion: Coinmarketcap reacts to criticism
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Important website in the crypto scene
Coinmarketcap is a very important one Website in the crypto area, but several times the provider faced accusations that it would distort its ranking. Now Coinmarketcap responds to it and improves its ranking conditions. At the end of August, a notice was published in which Coinmarketcap informed about the planned changes.
Coinmarketcap switched to a new listing method a while ago. As a result, some cryptocurrencies that did not meet the new requirements sometimes lost up to 1,000 places in the ranking. Coinmarketcap was not intended to have such a strong impact. For this reason, the method has been revised again. The first changes will be implemented this week, with more to follow in November. The goal is a fair listing of all crypto assets.
Objective representation of the trading volume
As early as June, Coinmarketcap announced that it would at Market capitalization and trade volume want to act fairer and the provider deleted some data. Coinmarketcap has been repeatedly accused of using false information. This sometimes caused high deviations, for example compared to the competition from Openmarketcap. Openmarketcap states that it only uses real trading volumes. The differences between the two websites were up to 90 percent. Coinmarketcap must fear for its reputation as a reliable provider. For Coinmarketcap it was apparently no longer possible to give an exact overview of the trading volume.
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No effective effects on the trading volume
The first change in the methodology probably had
Coinmarketcap also wrote in its latest communication that trading volumes are recognized as key figures and therefore improve the competitive conditions through key figures that are based on liquidity should be. Coinmarketcap speaks of a liquidity-based approach that will be implemented on November 12. In this way, Coinmarketcap wants to name the actual trading volume fairly and objectively.
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Deleting fake information
Fake information in trading sales should in the future will be filtered out and, if in doubt, resolved. Not only Coinmarketcap faced such concerns, as it is often not easy for users to understand the technical methods behind such a price index page.
Many investors still trust such analysis websites to find out here to provide information about cryptocurrencies. Current data such as the market capitalization of a cryptocurrency and the current trading volume help investors to analyze a cryptocurrency before making a purchase decision. The current popularity of a cryptocurrency can be seen from the trading volume, while the market capitalization allows conclusions to be drawn about long-term stability. The market capitalization has gradually become a particularly important key figure in the analysis of cryptocurrencies.
Analysis options at Coinmarketcap recently expanded
For some time now, users of Coinmarketcap have been able to use other analysis tools access and thus evaluate cryptocurrencies comprehensively. On August 14, the current version of the rating system FCAS went online. FCAS stands for Fundamental Crypto Asset Score. All users registered with Coinmarketcap, including the free basic version, can access this.
FCAS helps to gain further information on the stability of a cryptocurrency. The company Flipside Crypto, which developed the rating system, offers other analysis tools for companies. Since March, users have been able to access FCAS via Coinmarketcap. Since mid-August, ratings of more than 500 cryptocurrencies have been available. These can also be accessed via the free basic version. Further information includes key indicators such as returm of investment, all-time highs and lows or performance statistics.
Coinmarketcap now wants to quickly draw consequences and react to the latest allegations. Further changes will follow in the next few months. The provider must now react, because allegedly well-known partners like Ripple have already threatened to end the cooperation. Some wallet providers are also dissatisfied. With these, criticism of Coinmarketcap can lead to their own user numbers being reduced. In the worst case, Coinmarketcap probably records fewer page visitors and risks its credibility. The provider therefore urgently needs to make improvements in order to continue to play an important role in the crypto area.
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Little impact on leading cryptocurrencies
The planned changes to Coinmarketcap are unlikely to have any impact on the leading cryptocurrencies in the ranking. The market capitalization of the top 200 cryptocurrencies is easy to understand. In addition, these cryptocurrencies have high sales. This is followed by other cryptocurrencies based on their market capitalization. The end of the ranking is cryptocurrencies, whose market capitalization is difficult or impossible to understand.
Until the beginning of November, users can report suspicious sales to Coinmarketcap. The provider then wants to check them and is also on the lookout for critical or suspicious data. Errors that were made in the past should be avoided in the future by more elaborate methods.
Conclusion: Coinmarketcap reacts to criticism
The price index page Coinmarketcap was in the past again and again faced criticism that data on trade volume in particular was falsified. Nevertheless, many traders and those interested in crypto inform themselves about market capitalizations, prices or current trading volumes on the website. The provider now had to react to the ongoing criticism in order not to further endanger user numbers and credibility.
Changes were made to the ranking criteria in a communication, some of which will be implemented this week. Others Changes should follow by mid-November. Until then, users can also report suspicious data to Coinmarketcap.
Recently, the provider changed its methodology. As a result, some cryptocurrencies that did not meet the new requirements, lost up to 1,000 places in the ranking. Coinmarketcap did not intend to do this. The provider then revised its methodology again. However, these changes did not have an effective effect on trading sales. The provider was repeatedly accused of working with fake data on the trading volume.
Some of the information differed by up to 90 percent compared to similar websites. However, some data was deleted in June. It was high time for Coinmarketcap to make changes, because wallet providers and cryptocurrencies like Ripple had also signaled their displeasure.
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