Cryptocurrency market data aggregator CoinMarketCap admits the concerns regarding information inaccuracy “ are valid, ” Bloomberg writes . To treat potential inaccuracies, it will add more information to allow users to make more knowledgeable decisions.
According to Bitwise Asset Management’ s report posted to the SEC , the data offered by the CoinMarketCap is “ incorrect. ” The report states, “[d]espite its widespread make use of, the CoinMarketCap. com data can be wrong. It includes a large amount of fake and non-economic trading volume, thereby offering a fundamentally mistaken impression from the true size and nature from the bitcoin market. ” In fact , this may concern as much as 95 per cent associated with Bitcoin exchange trading volume.
Following Bitwise’ s report, CoinMarketCap announced it is going to provide new equipment, such as “ liquidity measures, sizzling hot and cold wallet balances plus traffic data for listed exchanges” in an effort to provide better transparency.
“We want to state that our own philosophy is to provide as much details as possible to our users, so that they can type their own conclusions and interpretations– instead of introduce our own bias into that will mix, ” said Carylyne Chan, global head of marketing with CoinMarketCap.