In the wake of the recent Bitwise report alleging massive fake trade volume reporting at many cryptocurrency exchanges, crypto market data aggregator CoinMarketCap is reportedly taking steps to address the problem. The company has acknowledged the concerns and vowed to add additional information to its listed metrics to provide investors with even greater transparency, Bloomberg reports.
The current controversy erupted after Bitwise released research last week claiming that as much as 95 percent of Bitcoin exchange trading volume was false. That report was reportedly delivered to the SEC by Bitwise, which is currently trying to obtain approval for a proposed ETF.
CoinMarketCap apparently provided details of its plan in a Friday email to Bloomberg. The company reportedly plans to provide “liquidity measures, hot and cold wallet balances and traffic data for listed exchanges.” CoinMarketCap global head of marketing Carylyne Chan explained:
"For instance, if an exchange with low traffic has $300M volume and just 5 BTC in its wallet, users will be able to draw their own conclusions without the need for us to make arbitrary judgment calls on what is ’good’ or ’bad.’ We want to state that our philosophy is to provide as much information as possible to our users, so that they can form their own conclusions and interpretations –- and not introduce our own bias into that mix."