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CoinMarketCap’s latest update has received criticism from users about how popular exchanges and platforms are being listed and ranked.
Crypto Twitter’s famous pseudonymous Cosmonaut spoke out against CoinMarketCap (CMC) for BitMex’s position, which is in the 175th spot. As BitMEX stands as a popular derivatives exchange, other users joined the thread to question the legitimacy of the ranking.
BitMex is now completely gone from coinMarketCap, sitting comfy at spot, wait for it, 175.
This is despite the fact that Bitmex has the 2nd highest web traffic factor of all exchanges. Which according to coinMarketCap was supposed to be how exchanges would be ranked pic.twitter.com/bVJ6gwan9P
— Cosmonaut (@CosmonautC) June 8, 2020
With CMC’s new metrics in place (with one of the key factors of ranking being focused on web traffic), BitMEX in a low ranked position seems to be out of place. Under CMC’s own data, BitMEX boasts a score of 960/1000 for web traffic – showing exceptional results. The liquidity of the platform, though, scores BitMEX zero.
CoinMarketCap Data Metrics Difficult To Interpret
As reported previously, the new metrics CMC will consider include the exchange’s Liquidity Score, Web Traffic Factor and pairing volume. An “intermediate step” in the algorithmic changes CMC is making was to make Web Traffic Factor the exclusive metric, placing explicitly Binance in the number one spot.
Further down in the rankings several decentralised exchanges, such as Bancor and Uniswap, are listed. Other derivative platforms, also with high web traffic scores, also are listed below the 175th position. With zero liquidity scores, this should suggest that the metric favours the liquidity factor. However, several other exchanges which are listed in the first 50 ranked platforms on CMC also show liquidity scores of zero. CoinDCX and Huobi Russia both fall within the top 50 despite having no liquidity.
This makes it difficult to pinpoint how data is interpreted by CMC to rank the listed exchanges.