CoinMarketCap, a major platform that provides users with information about crypto digital assets, under the parent company Binance Holdings Limited, has said that it will no longer request exchanges to submit their user numbers again.
CoinMarketCap, in a statement, made the declaration to reinstate its dedication towards ensuring accuracy of data on its platform and the entire cryptosphere.
The crypto tracking platform said it made the decision in compliance with the feedback it received from the crypto community, promising to heighten efforts in addressing the issue of inflated volume as moaned by its community.
Inflation of volumes has been a major challenged for the crypto industry. CoinMarketCap, in a 2019 report on trading volume authenticity, among a number of platforms, played huge role in publishing bogus data.
The report did not raise much concern as to when Binance acquired the crypto data provider platform. After CoinMarketCap joined the Binance family, many questioned the transparency level of the platform onward.
CoinMarketCap then responded, assuring users that Binance will change its business model.
In the latest report, CoinMarketCap noted that its team is working and researching endlessly to ensure users get the best tool in making informed decisions while trading.
The team furthered that it will no longer wait for perfect solution, hence an iterative approach has been put in place and a number of new metrics and improvements will be rolled out soon.
CoinMarketCap posited that the volume of an exchange is determined by the number of users (i.e. buyers and sellers) hence, using web traffic to determine the volume of an exchange would be a good measure than request the exchanges to submit their user-base.
To uphold the new approach, CoinMarketCap has designed a Web Traffic Factor to monitor exchanges. The Web Traffic Factor will be able to track exchanges’ bounce rate, pageviews, on-site time, unique visitor count and more. CoinMarketCap then vowed to improve the liquidity scores on its platform.