In a recent blog post commemorating their sixth anniversary, the firm has announced that they will remove exchanges from calculations if they fail to provide mandatory data by June.

CoinMarketCap (CMC) has announced a brand new alliance called the Data Accountability & Transparency Alliance (DATA) to provide greater transparency, accountability, and disclosure from exchanges.

We are planning to grow the types of data available for analysis and enable filtering to allow deeper analyses and views into the exchanges’ operations

CoinMarketCap

A broad number of exchanges have already joined the alliance, including among others Binance, Bittrex, KuCoin and Bitfinex

The announcement states that more partners are expected to join the alliance in the future.

As a part of its transparency initiative, the following data will become mandatory for all exchanges:

Ongoing live trading and order book data provided via API.

Hot and cold wallet addresses are expected to be provided. CMC says that this data will be used as proof of solvency.

With these additional data points, users will be better able to contextualize the pricing and volume being reported on the site and API.

CMC stresses that this will be mandatory.

They wrote:

Any exchange that does not provide this mandatory data will be not be included in the price and adjusted volume calculations on the site

The new announcement comes on the heels of the recent backlash and controversy due to CMC’s volume statistics.

On March 20, Bitwise Asset Management released research claiming that 95% of the volume on unregulated exchanges is likely to have been faked by exchange operators.

Following this announcement, exchanges now have 45 days to bring their operations into compliance with these new guidelines.

.

Leave a comment

Socials

CryptoEleven 2019. All Rights Reserved.