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- Coinmarketcap is a trusted source for the cryptocurrency market, capitalization, pricing, and information.
- Coinmarketcap.com has reportedly introduced new metrics to tackle counterfeit volume.
- The new Coinmarketcap algorithm changes its old existing programming of a single metric ranking network.
Coinmarketcap is a trusted source for the cryptocurrency market, capitalization, pricing, and information. Firstly, it is a U.S. based company specializing in crypto information, news, API, blockchain data, digital assets, market data, etc. Secondly, it runs cryptocurrency and blockchain data to run simulations about trading and investment strategies. Lastly, the company aggregates data from multiple exchanges about coin trading and has cryptocurrency data available over a period of five years. Coinmarketcap.com has reportedly introduced new metrics to tackle counterfeit volume with improved coinmarketcap new algorithm.
The Changed Crypto Exchange ranking algorithm
This agency was claimed to have favoured the Binance exchange, which in return raised questions about the independent status of CMC. The previous algorithm used was severely criticized by Binance rivals. Further, CMC will start using a cross of liquidity score, pairing volume, and its new and improved algorithm.
The new Coinmarketcap’s algorithm changes its old existing programming of a single metric ranking network to a collaboration of over 5,500 cryptocurrencies of at least 22,000 market pairs. Additionally, the site is working on putting an end to the volume inflation problems in which exchanges have been accused off to show more legitimacy and attract customers.
One of the things in the site’s upgradation is the introduction of a confidence indicator. So, the indicator visualizes the trust level in the trading policies set by different exchanges.
CMC’s Latest Initiative
An outline of CMC’s latest initiative:
1. Their current default ranking mechanism would see a replacement by Web Traffic Factor. And, it is based on market pair ranking and respective market pair’s confidence.
2. Along with the ‘Confidence indicator,’ the process of ranking market pairs would be updated. Further, the new algorithm takes into account – Liquidity score, Web Traffic factor, and volume.
3. The ‘Confidence indicator’ is based on an advanced learning algorithm that takes into account all the information ingested.
4. The use of one page, to rank exchanges instead of using a number of pages to reduce confusion.
5. Submission of Web Traffic Factor instead of asking exchanges to submit their user number.
6. The new matrix improves the Liquidity score.
Importantly, the website urged the consumers to give feedback about these new additions and upgrades made.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
