The new CoinMarketCap under the administration of Binance continues to generate controversy. Well, after having updated the way it organizes its exchange rankings, the crypto market data platform was accused of favoritism. By putting its parent company, Binance, first on the list. And now, despite the complaints, a new CoinMarketCap ranking keeps Binance at the top.
The controversial purchase from CoinMarketCap
It’s difficult to overstate the importance of a platform like CoinMarketCap, for a decentralized market like cryptocurrency. Well, the company dedicated to providing data on the state of the crypto market has become a true institution. With reliable information for all actors in the crypto world. Those who use it as a guide when making investments.
As a result, the purchase of CoinMarketCap by Binance a few weeks ago raised fears in the crypto world. Well, it opened the prospect of data manipulation within the platform by Binance. Aiming to improve your company’s figures and make it more attractive to investors.
Although immediately all of Binance, with Changpeng Zhao its founder at the helm, began to deny that there could be any kind of manipulation in the CoinMarketCap figures. Well, the page would keep a good part of the autonomy in its operation. The development of events gave further strength to the suspicions of the crypto community.
Well, recently CoinMarketCap introduced a new method for calculating the ranking of exchanges in the crypto market. Which took into account new factors including web traffic. Element that ordered the ranking by default when entering CoinMarketCap, and therefore put Binance first.
Something that generated resentment in exchanges such as Huobi, which was relegated to a low position despite its importance, since web traffic only counted in the Latin alphabet and not in Asia.
The new ranking
Apparently all of these complaints caused annoyance within CoinMarketCap. Well, recently they announced through a post on their blog that they would renew the operation of their exchange ranking.
Leaving behind the default order according to web traffic. To go to a weighted average of all the elements that are taken into account in the measurement of exchanges. Including web traffic, average liquidity, transaction volume, and number of markets.
In the words of CoinMarketCap CEO Carylyne Chan, this new ranking “will provide our users with an accurate reflection of the exchanges, as they are scored in a trio of factors that provide a complete picture“
This new ranking would correct errors in the last form of measurement. That would allow exchanges like Huobi Global to occupy a position more in line with their weight in the crypto market. Now being in position number 2, after having become number 16.
However, this change has not been without controversy. Well, even though it now seems to be more balanced than before, the new CoinMarketCap ranking keeps Binance at the top. Exchange that despite its strength, ranked low with the previous system. Making the suspicion raised by this rearrangement our Today’s Data here at CryptoTrend.
