CoinMarketCap has introduced new metrics to combat counterfeit volume. Earlier, other crypto exchanges claimed that the platform favoured the Binance exchange, which bought CoinMarketCap in late March.
CoinMarketCap - new metrics
The leading cryptocurrencies data aggregator - CoinMarketCap (CMC) has introduced new metrics. These are designed to limit the impact of false volumes on platform data. The new statistics will be used to determine the position of crypto exchanges and market pairs.
The changes result from other, recently introduced modifications, which turned out to be controversial due to the favouring of the Binance exchange. Binanace bought the CMC platform in late March this year.
To mark the suspicious volumes reported by the exchanges, CoinMarketCap introduced a new metric, "Confidence", on 29 May. This label uses a machine learning algorithm to examine all data provided by the CMC "to determine if the volumes reported by exchanges are inflated, and to what extent".
Changes in the ranking of market pairs
CoinMarketCap has also introduced a new ranking system for market pairs, which will replace the current volume value during default sorting.
More clearly, CMC will use a single algorithm that takes into account the liquidity, traffic factor and volume of each pair. CoinMarketCap plans to soon introduce this indicator as the default sorting method also for exchange rankings on its platform.
In one of the posts published on the platform's blog it was found that users are confused and do not know how pairing works. Many of them requested to fight against inflated volumes.
New CMC indicators accused of favouring Binance
On May 14th, CoinMarketCap launched its new "network traffic factor". The criterion is aimed at analysing user activity on the exchanges, including the number of page views, unique visitors, time spent on the site, bounce rate and rating by search engines.
CMC's new owner, Binance, a leading cryptocurrency exchange, has been criticised for the introduction of the new feature, as it has been ranked first. A similar idea was considered by CoinMarekCap earlier and was rejected before the last change of ownership.