CoinMarketCap Announces More Algorithmic Changes

Leading cryptocurrency aggregator CoinMarketCap (CMC) has announced another update to its platform, following a number of changes over the past months.

Inn official publication, CMC announced the next set of algorithmic changes which will impact the way exchanges are tracked and ranked.

As announced in May, the platform fell under heavy criticism following changes made to the way it ranks exchanges. This came as a result of Binance buying the platform in early April. Now, CoinMarketCap users are criticising the platform for showing bias towards Binance, which is listed and ranked as the top-performing exchange.

In response to the criticisms, CMC introduced a new “Confidence” feature. This metric is set up to flag suspicious activity in reported data coming in from exchanges. Machine-learning algorithms in place help the platform whether data reported is true and accurate.

The Latest Update Of New Metrics

The latest CMC update sees the introduction of new algorithms which will “replace the previous default ranking of exchanges by Web Traffic Factor.” The platform explained that this step concludes the first phase of changes it will see:”

“The previous default ranking of exchanges by Web Traffic Factor was only an intermediate step in the development of this comprehensive solution.”

According to CMC, the market pair rankings will now consider new metrics, namely Liquidity Score, Web Traffic Factor and pairing volume. From there, the market pair will be scored against the “Confidence” metric which speaks to how much CMC trust “the veracity of the reported volume of the market pair reported by the exchange.

Built To “Improve And Adapt” To Volume, Liquidity And Long-Term Changes

Carylyne Chan, interim CEO, CoinMarketCap commented on the latest update, saying:

“I believe this new ranking of exchanges will provide our users with an accurate reflection of the trading venues, as they are scored on a triage of factors that provide a complete picture. Our machine learning algorithm will improve and adapt to volume, liquidity and traffic changes over time.”

 

Related Articles

German Bitcoin Wallet Shrinks After Major Sale

According to a report, the German government has sold 88.4% of its original 50,000 Bitcoin and has 5,800 BTC remaining.

UK Regulator Issues Warning on Fake Solicitor Bitcoin Scam

UK regulator announced that Email scams requesting crypto have been gaining popularity among criminals worldwide.

Bank of Italy’s Crypto Guidelines Awaited

The Bank of Italy revealed that it will soon announce the long awaited cryptocurrency guidelines and how to apply EU's MiCA laws.

Australia’s ASX to Introduce Second Bitcoin ETF

On July 12 2024, DigitalX Bitcoin ETF will be listed under the BTXX, becoming the second spot Bitcoin ETF to be approved on the ASX.

See All