CoinMarketCap, one of the leading sources of market data and information about the crypto space, has announced a new change in its ranking methodology. The main goal is to offer better information regarding liquidity of exchanges and the ranking of all crypto assets in the platform.
The information was released in a blog post on August 30. Although the official announcement is expected to be on Monday, September 2, CoinMarketCap has informed that they will be testing a change in their systems to “represent crypto assets more fairly.”
You’ve spoken, we’ve heard! We will be testing a change in our ranking methodology on Monday, Sept. 2, to represent all cryptoassets more fairly. Please see the full details here: https://t.co/oOFfcliqG5 😃 We look forward to your feedback!
— CoinMarketCap (@CoinMarketCap) August 30, 2019
The platform has also decided to introduce an internal feature that would exclude crypto assets from being eligible to be ranked in the Top 200 if they don’t meet the criteria specified in CoinMarketCap’s methodology. The move aims to verify the project’s supply information with no incongruities, significant liquidity and trading activity with normal spreads across sufficient sources of market data, among other things.
“The sheer variety of monetary and accounting models used by projects adds complexity to the process of verification, which means that there will be occasions where CoinMarketCap will have to exercise its discretion in determining a project’s circulating supply and/or eligibility for a Top 200 ranking,” Section 10 of the methodology reads.
With the new change CoinMarketCap will be fixing and streamlining the rankings in order for all the cryptocurrencies to be fairly represented in the rankings. As the platform has informed in the past, it planned to release new metrics based on liquidity, which would address the concerns related to inflated volumes.
At the same time, CoinMarketCap admits that there are some limitations of using just volume as a metric. For that reason the platform is going to improve its metrics by adding liquidity information to the data provided. The new liquidity metrics are going to be launched as soon as on November 12, 2019, and will be combined with other metrics that will go into the ranking of exchanges and projects.
Subscribe to our Newsletter
View original post