To increase transparency, CoinMarketCap will assign cryptocurrency exchanges of the category

From November 12, the popular analytical service CoinMarketCap will launch a new cryptocurrency exchange liquidity assessment system. This was stated by company representatives during a round table of the organization “Alliance for Accountability and Data Transparency” (DATA), writes Cointelegraph .

According to the CoinMarketCap team, the need to improve liquidity metrics when ranking crypto sites is due to the problems of laundering trading.

“Using liquidity as a metric is difficult, as it is not quantifiable and is constantly changing. Therefore, to limit possible fraud, the metric that determines the trading volumes on cryptocurrency exchanges will require significant processing, ”the service representatives said.

In addition, on October 14, CoinMarketCap will launch a control panel that will allow exchanges to independently select the data provided, including requirements for identifying customers, the location of offices and the availability of single order books with other exchanges.

“Depending on the amount of information transmitted by the trading floors, it is planned to assign categories to them. Thus, they will be more motivated to disclose additional information and, as a whole, this will increase the level of transparency in the cryptocurrency space, ” CoinMarketCap believes.

The importance of a system in which third parties can urge cryptocurrency projects to be honest with the help of “real negative consequences,” said Ben O'Neill, Director of Business Development and Operations at Messari, an analytical platform.

“Currently, exchanges do not adhere to the practice of delisting“ bad projects ”. The only example of such delisting is the exclusion of Bitcoin SV cryptocurrency from the exchange lists in the spring of 2019, ” he said.

In June, 70% of bitcoin exchanges joined the CoinMarketCap alliance. At the same time, the service announced plans to add new metrics, including evaluation of trading volumes, popularity, team information, product relevance, and others.

It was indicated that projects that do not join the initiative to track data will be excluded from the main rating, falling into the so-called “untracked listing”.

Recall, on the eve of the analytic data provider, Nomics announced the launch of the Transparent Volume service , which is designed to show the percentage of reliability of trading volumes on exchanges.

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