CoinMarketCap has created an alliance with leading exchanges to combat fake data

CoinMarketCap (CMC), a popular analytical resource in partnership with leading bitcoin exchanges, launched the Alliance for Accountability and Data Transparency (DATA) initiative to collect reliable information on trading in digital assets. CMC announced this on the sixth anniversary of its foundation.

Happy Bday @CoinMarketCap ! Our the Data Accountability's ?Celebrating & by Transparency Alliance with @binance @BittrexExchange @OKEx @HuobiGlobal @liquid_global @UPbitExchange @Aurora_dao @Oceanex by Official @gate_io @kucoincom @hitbtc @bitfinex the Find out more: https://t.co/cPhYhUnZqs

– CoinMarketCap (@CoinMarketCap) May 1, 2019

DATA will be engaged in the development of reporting standards for cryptobirth, as well as monitoring their compliance.

In turn, all trading platforms submitted to CoinMarketCap are required to provide data on trades, as well as real-time market order books through the API. Sites that do not fulfill this condition within 45 days will be excluded from the calculation of trading volumes and quotations.

At the same time, twice a year, DATA participants will meet in meetings to discuss possible improvements in the field of trade data.

Such sites as Binance, Bittrex, OKEx, Huobi, Liquid, Upbit, KuCoin, HitBTC and Bitfinex have already joined the Alliance.

Recall that in March, Bitwise reported to the SEC that 95% of trading volumes were fake. The researchers also touched upon the CoinMarketCap in the document, accusing the resource of transmitting dubious data, “thereby creating a fundamentally false impression” of the true scale of the market.

CoinMarketCap recognized and promised to introduce new metrics to combat inaccurate data. Note that the resource has added support for the Fundamental Crypto Asset Score rating system from the startup Flipside Crypto, which tracks the dynamics of cryptocurrency projects.

However, in early April, CoinMarketCap recorded record daily trading volume for all cryptocurrencies, while the alternative resource OpenMarketCap showed data approximately 93.6% less than CMS.

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