The most popular cryptocurrency pricing data site has launched a new way of classifying exchanges that keeps Binance at the top of the exchange list.
Months of fire for CoinMarketCap
CoinMarketCap was the subject of heated criticism last month after its new web traffic-based rating system gave Binance - which acquired the platform for $ 400 million in April - a perfect score.
Well, now the platform has some good news: "We have just implemented a new algorithm to replace the previous default ranking of exchanges with a Web Traffic Factor," reads a post from last week.
CoinMarketCap's new rating system basically brings together all the parameters used to evaluate the individual markets of an exchange - its bitcoin or ether market, for example - in an easy-to-read score.
The metric is linked to the trading volume, liquidity and web traffic reported by an exchange, combined together to create a single score. This is assessed by an indicator of "confidence" in which the CoinMarketCap algorithm judges whether the score is accurate or if it could have been manipulated.
Carylyne Chan, CEO of CoinMarketCap, said in a statement that the new rankings "will provide our users with an accurate reflection of the trading platforms, as they are assessed based on a number of factors that provide a complete picture."
The machine learning algorithm, he added, will dynamically adapt to improve accuracy as it receives more data over time. New parameters, including new "quantitative factors", are currently being tested and could be incorporated into the new system. classification later.
The company denies any favoritism towards Binance
Like other price comparison sites, CoinMarketCap tried to find a solution for invalid data. As he states in his page on the methodology, inflating the volumes "to give the impression of legitimacy and a false sense of liquidity in the markets ... in the past it has contributed to eroding confidence in the cryptocurrency sector and, at times, has deceived both Investors than the merchants. "
Although CoinMarketCap previously used an adjusted volume metric, which excluded skewed or suspicious data, it was replaced last month with a web traffic factor, the first phase of a new classification system to improve the identification of inflated volumes.
And many were surprised when Binance, who had been ranked 1.000th with the old system, climbed the rankings thanks to a web traffic score of XNUMX, the best possible.
CoinMarketCap denied favoring its owner. Speaking to the media, Chan reiterated that CoinMarketCap provided only neutral data and rankings and did not "update the algorithms to fit anyone's agenda".
Finally he added "We will continue to be transparent in subsequent updates of our methodology, without any preferential treatment for any exchange or project (even those related to our parent company!)".
