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- Binance gains the top spot in the CoinMarketCap rankings, which was not taken in good spirit by competitors.
- According to layman terms, any participant managing the ranking system themselves is quite unethical.
- This is what the majority of competitors of Binance feel, which is not entirely wrong.
The current scenario of cryptocurrency is in a perfect state, with marketing policies improving over the years. It had once cut a sorry figure due to errors in judgment, but the latest trends have seen thorough changes to the same. Binance gains the top spot in the CoinMarketCap rankings, which was not taken in good spirit by competitors. The method of increasing the firm’s face value has indeed returned some favors from the e-commerce industry. Be it the sudden rise or the immediate underlying tie-ups the firm did, the success indeed caught the eyes of investors and close competitors alike.
Binance and CoinMarketCap’s Unification
Well, this news was pretty sudden amidst the COVID-19 pandemic. However, being one of the leading exchanges to the CoinMarketCap’s ranking sites, Binance indeed sealed the deal way off base. The main plan was to create a bridge between the industry and the common mass to reach people more efficiently. With Binance’s entry into the arena, CoinMarketCap can heave a sigh of relief looking at great returns and improved market statistics.
Binance is in a good bargaining position right now with investors and competitors alike. With the deal, they are currently the owners of the biggest currency exchange as well as the crypto ranking site. Keeping things transparent with the ranking system is something they will stay constant, claimed company officials.
Ethical Issues May Tend To Arise
According to layman terms, any participant managing the ranking system themselves is quite unethical. This is what the majority of competitors of Binance exchange feel, which is not entirely wrong. Taking over the CoinMarketCap ranking system and still in the race can be nothing less than a monopoly. This action can bear enormous losses for others in the list, by parasitically destroying competitor profits or analysis on the official site.
Ciara Sun, of the popular Huobi Grup, raised the severe concern of manipulation and unethical practices. However, she did not impress upon malicious practices as Binance’s image is as clear as daylight. Her statements may raise eyebrows, but the practice is not entirely illegal. There have happened a number of incidents where participants themselves maintained raking systems yet slumped to lower ranks. However, this implying a finance sector, involving real money, things can turn pretty serious.
Resorting To A Meaningful Solution Is The Key
There must be certain steps to refrain from questions on transparency and partiality on the ranking metrics. Those can include an impartial advisory board for analyzing the accuracy of the rankings along with the complete review procedures published online.
Although the damage has been done, which can be irreparable, this the least the organizations can do to save face. Also, some of the measures may discuss and taken, claim top bracket company officials.