CoinMarketCap Partners With 12 Crypto Exchanges To Tackle Issue Of Fake Trading Volumesbr>
Cryptocurrency market data site CoinMarketCap has formed a new alliance that seeks to promote greater transparency, accountability, and disclosure from projects in the crypto space.
Called Data Accountability & Transparency Alliance (DATA), the initiative is underpinned by CoinMarketCap’s belief that the provision of additional data points would empower their users to make more informed decisions, and provide a means for projects to differentiate themselves through enhanced disclosures.
12 major cryptocurrency exchanges have already joined the alliance as founding members, including Binance, Bittrex, OKEx, Huobi, Liquid, UpBit, IDEX, OceanEX, Gate.io, KuCoin, HitBTC and Bitfinex, with more partners expected in the future. Members will combat issues like wash trading and fake trading volumes by working to establish, review, and align industry standards, as well as to identify gaps in the industry and to develop strategies to improve data accountability and transparency. They will also provide enhanced, live, and in-depth trading and orderbook data to CoinMarketCap, allowing the market data site to verify and repost it.
“The DATA exchange partners currently on board have committed to providing the following: (i) mandatory data, and (ii) self-reported information on an ongoing basis,” CoinMarketCap said. “While providing mandatory data is a prerequisite for being a DATA partner, a partner will go above and beyond to contribute to shaping the standards, strategies, and measures according to the objectives stated above. There is a 45-day grace period for all exchanges to send this new endpoint to us, and changes will go into effect on June 14, 2019.”
Livio Weng, CEO of Huobi Global, said that the issue of fake trading volumes is a real one in the industry and people have a right to know that the numbers provided by exchanges are legitimate.
“We think there should be no exceptions and we see something like DATA as a natural next step as our industry grows in both maturity and mainstream acceptance,” Weng said. “Huobi prides itself as being on the forefront of data authenticity, accuracy and transparency. We are happy to work with others to advance these values across the industry as a whole.”