CoinMarketCap (CMC) tracks the value of the crypto market and on 1st May it made an important announcement in a blog post celebrating its sixth anniversary.
It announced a brand new alliance called the Data Accountability & Transparency Alliance (DATA) in order to provide “greater transparency, accountability, and disclosure from projects in the crypto space.” A significant number of exchanges have joined DATA, including Binance, Bittrex, OKEx, Huobi, Liquid, UpBit, IDEX, OceanEX, Gate.io, KuCoin, HitBTC and Bitfinex. It is thought others will join shortly.
The significance of this initiative, which is intended to add more transparency to the network and remove causes of complaints is that “CoinMarketCap will also now require all the crypto exchanges to provide mandatory API data that includes their live trading data and live order book data.” CMC also wrote that any exchange that does not provide this mandatory data will be not be included in the price and adjusted volume calculations on the site.
CMC in its blog refers to the typical complaints it receives related to exchanges:
“A cursory glance at our Zendesk tickets (which can number in the high hundreds to thousands per day) reveals a bevy of exhortations to delist and/or denounce specific projects/exchanges for misconduct. These usually take the following forms:
- Remove Exchange X because it is faking its volumes!
- Project X is a scam. Please delist it otherwise you are aiding and abetting these crooks!
- Please remove our pairs on Exchange X because we do not want our project to be associated with wash trading.
- Exchange X has stolen my funds! Please issue an alert!
And as Cointelegraph comments: “The new announcement comes on the heels of the recently sparked controversy around CMC’s volume statistics. On March 20, crypto index fund provider Bitwise Asset Management released research claiming that 95% of the volume on unregulated exchanges is likely to be fake or non-economic in nature.”