Cryptocurrency market data aggregator CoinMarketCap admits the concerns regarding data inaccuracy “are valid,” Bloomberg writes. To remedy potential inaccuracies, it will add additional information to allow users to make more informed decisions.
According to Bitwise Asset Management’s report submitted to the SEC, the data provided by the CoinMarketCap is “wrong.” The report states, “[d]espite its widespread use, the CoinMarketCap.com data is wrong. It includes a large amount of fake and/or non-economic trading volume, thereby giving a fundamentally mistaken impression of the true size and nature of the bitcoin market.” In fact, this might concern as much as 95 per cent of Bitcoin exchange trading volume.
Following Bitwise’s report, CoinMarketCap announced it is going to provide new tools, such as “liquidity measures, hot and cold wallet balances and traffic data for listed exchanges” in an effort to provide better transparency.
“We want to state that our philosophy is to provide as much information as possible to our users, so that they can form their own conclusions and interpretations–and not introduce our own bias into that mix,” said Carylyne Chan, global head of marketing at CoinMarketCap.