Last week we reported you that Ciara Sun, the Vice President and the Head of Global Business and Market of Haubi crypto exchange put a question on the exchange Ranking system on Coinmakretcap and put the allegation on Coinmarketcap owner Changpeng Zhao that they are benefiting the Binance exchange over on all exchange by manipulating the raking system of Coinmarketcap with high prioritized web traffic and Volume inflation over traditional gauges like trading volumes and liquidity.
but after this allegation owner of Binance and Coinmarketcap Changpeng Zhao denied all these allegations and give confidence to everyone that he will not interfere in the CMC business and CMC will maintain its independence meanwhile At the same time, they will continue to incorporate views from the community to make their ranking algorithms even better.
CMC explains that in order to get ranked higher, each trading pair has to perform well in all three departments. The new algorithm was developed with the help of machine learning by analyzing all kinds of available data such as order book depth and user base.
Prior to the update, the website only took into account the reported volume, which can be easily faked by unscrupulous exchanges.
Apart from the updated ranking algorithm, CMC also introduced the new ‘Confidence’ indicator that comes in three bands: high, moderate, and low. It shows whether exchanges are prone to inflating their volumes.
While Binance, Coinbase Pro, and Bitfinex boast the perfect score, OKEX is in the moderate territory despite being ranked second on the list. Binance is still the number one exchange even after the new ranking system.Coinmarketcap blog post link
MAY 29, 2020
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