CoinMarketCap Forges Ahead With A New Metric ‘Liquidity’ To Combat Volume Manipulation

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Spot Market Trading Volume of Bitcoin has Increased 50x in Third Bitcoin Halving

  • CoinMarketcap, one of the leading crypto data provider comes ahead with a new metric – Liquidity.
  • It will take the volume’s space while calculating the data. It believes it’s a good response to give a straight reply to false trading volumes.
  • In the New Metric, data will be drawn at random intervals in 24 hours and eventually the records will be averaged to draw the most accurate figures

The Capital, the inauguration conference of the CoinMarketCap in Singapore passed the metric news today for analyzing and computing exchanges and token pairs on Liquidity.

Presently it is live on the company’s website and will take into consideration the data of 3000 crypto assets enabling them to reveal a precised and non-fictitious estimation. The new metric will address several factors like the changes in the order book depth and the gap from mid-price. An interesting feature is that data will be drawn at random intervals in 24 hours and eventually the records will be averaged to draw the most accurate figures.

Cary Lyne Chan, Chief Strategy Officer at Coin Market cap speaks about the aims and objectives of the firm. She mentions that the new Liquidity metric will be based on adaptive data so as to avoid issues like market manipulation.

She said

“We believe our adaptive methodology will make our metric very difficult to ‘game’ as orders would need to be placed close to the mid-price, or risk counter-productive to the Liquidity metric scoring.”

She is pretty confident that the new Idea cannot be trifled with.

The new metric, the firm claims will mark the independence from the previous volume system and ultimately completely escaping from the chances of false volume reporting and releasing of untrustable data. Chan pointed out that the “inflation of volume” can have a much better substitute once Liquidity is successfully implemented.

She confidently speaks about the beneficial and replacing features of the metric-

“Today, we are introducing a new metric to highlight what matters most to investors and traders; Liquidity. With our Liquidity metric, we hope to provide public good to the crypto market by encouraging the provision of Liquidity instead of the inflation of volumes”

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