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Data collection and price aggregation platform for cryptocurrencies and tokens, CoinMarketCap, announced on May 1 that any crypto exchanges that refuse to comply with their data requirements will be kicked off the platform. The announcement was made alongside many others on a blog post by CoinMarketCap celebrating its 6th birthday.
The platform wants to improve transparency and encourage accountability and the announcements made in their blog post are mostly aimed towards those ambitions.
In March, CoinMarketCap announced that the firm would make a number of changes to the site and the data provided through their API’s. The announcement has come after concerns were raised by some in the community regarding the authenticity of the data collected by CoinMarketCap. Some have alleged that the site is publishing false information based on the data feeds of cryptocurrency exchanges who broadcast fake trading volumes.
In their blog post, CoinMarketCap addressed these issues. “A cursory glance at our Zendesk tickets (which can number in the high hundreds to thousands per day) reveals a bevy of exhortations to delist and/or denounce specific projects/exchanges for misconduct,” the firm said. Following the statement was the following list of examples of complaints lodged by users on their platform.
• Remove Exchange X because it is faking its volumes!
• Project X is a scam. Please delist it otherwise you are aiding and abetting these crooks!
• Please remove our pairs on Exchange X because we do not want our project to be associated with wash trading.
• Exchange X has stolen my funds! Please issue an alert!
Because of these hundreds of complaints on a daily basis by their users and other news stories of theft, hacks, fraud and wash trading, CoinMarketCap announced that they have formed the Data Accountability and Transparency Alliance (DATA). This alliance’s purpose is to encourage a more honest, trust-worthy and transparency in the cryptosphere.
In their blog post, CoinMarketCap lists the following objects of DATA:
• Review, align and enhance reporting standards across the industry.
• Identify gaps, propose strategies and measures to enhance data accountability and transparency.
The blog post further states that all exchanges that want to be listed on CoinMarketCap’s data charts will have to self-report mandatory information regarding their books and trading data. Any exchanges that fail to do so will be kicked off the platform, said CoinMarketCap. From the post:
“These data points will enable analyses to determine measures such as liquidity, order book depth, spreads, and other meaningful measures. With these additional data points, users will be better able to contextualize the pricing and volume being reported on the site and API.”
These changes are set to take effect from June 14, 2019. Exchanges will be given a 45-day grace period to provide the requested information.