Coinmarketcap is definitely the go-to place when looking for cryptocurrency prices and volume. And now Coinmarketcap (CMC) is responding to accusations of supporting wash trading.
Earlier this week, a platform called Crypto Exchange Ranks published a detailed report on Bitforex, a little-known exchange which managed to quickly jump from being virtually unknown to one of the top 10 exchanges according to CMC.
The idea of wash trading is very simple. It’s a simultaneous buying and selling on their own platform to create an illusion of high trade volume.
Coinmarketcap responded by explaining that CMC “stands for data transparency and clarity”.
“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.”
CMC removed the minimum volume requirement for exchanges, which means that platforms willing to be included on CMC, won’t have to inflate their trade volume just to meet the criteria.
Do you think that CMC did enough? Share your thoughts in the comments below!