What’s up crypto people!
Today some big changes are coming to coin market cap and potentially a domino affect on many crypto prices.
To begin I would like to share the following article written by CMC’s vice president of marketing (Carylyne Chan): https://blog.coinmarketcap.com/2018/07/19/coinmarketcap-stands-for-data-transparency-and-clarity
The main part of what she said is as follows:
“While we have a relationship with most of the exchanges listed on our site, there is no guarantee that any of them will respond or comply to any specific guidelines, but we have to continue showing users the best approximation of price and volume based on all the data we have available. The evolution of new models such as transaction mining also means that there needs to be new ways to account for volume. Compounding it is the fact that they are, in fact, enabling greater liquidity in the way that users are trading more readily on the platforms.”
The issues we really in the way CMC gathered data from these exchanges, the main issue in my opinion was wash trading (When a trader buys and sells a security for the purpose of feeding misleading information to the market), other factors included; low fees and transaction mining.
Carylyne also mentioned:
“Even though we try our best to verify the data with the exchanges on our site, we are not in the practice of censoring or policing others. In an open ecosystem like the one we are in, we believe that the best policy – that we follow closely – is to over-provide on data and let users make their own informed choices about what to do with that data”
In my opinion this is completely fair, the crypto industry never had and never will have an individual or company that will tell you what is correct and what is not. It is up-to you to do you own due diligence (a term used to much I know).
What are the changes?
“CoinMarketCap will ensure that there are more levers and toggles that users can use to filter for the exchanges most relevant to them, such as those that they have accounts with, and look only for specific exchanges with attributes that are of interest, such as exchanges supporting transaction mining”. They will also introduce new metrics for example: 7 and 30 day trading volumes.
As many of you know I always like to question everything so the question is, will this affect the price of coins? I had a talk with my community members and here is a reply one of them gave me: