Sirlibz
You gotta ask yourself…Why are earth would CZ pay $400m for Coin Market Cap? 🤔😳 — Crypto Traders Pro
A lot of people might have asked this question, for some they feel they have the answer while others are curious. Maybe the answers are provided with the recent steps taken by Coin market Cap.
After a while of acquiring CMC, CZ tweeted out.
He was obviously asking for feedback from the community on what to do next or what they would like to see improved on CMC. Among other answers were the request to fight out wash trading and hunt exchanges with inflated volumes so as to look big.
In a bid to fight off inflating volumes ( wash trading ) reported by different exchanges. CZ tweeted out with an enclosed link to the ranking of the exchanges on CMC showing the new ranking protocol.
Exchanges are now ranked based on their web traffic and on a scoreboard of 0-1000. What this means is that Exchanges will no longer be ranked based on their trading volume but rather on the number of visits and activities conducted within the website.
With the new ranking protocol we find Binance topping the list with a 1000 points , followed by Coinbase pro and Bitmex exchanges respectively. This action and ranking has left some individuals wondering if truly Binance has 100% of human activity and no inflating of trading volumes and if this ranking protocol was chosen by them since they know that they get a lot of visitors over time.
This might hit as a surprise since Binance based on the previous ranking was always found between top 10 and Decrypt reported it to be on the 15th at some point after acquisition of CMC.
This is what Chan Chief Strategy Officer and current acting CEO of CMCÂ said regarding the web factor ranking protocol last year before acquisition.
“We’ve seen other people do things like you’ve said, web traffic as a way [to verify exchanges are legitimate] but people trade using API keys so that’s why web traffic is not a good indicator.”
“We still do not believe that web traffic is the be-all and end-all metric. To repeat ourselves, as per our blog post, web traffic is one of the many factors that we are iterating on to provide a better adjusted volume metric for our end users.” — Chan
While some individuals are happy over this development, some have questioned it. Among this is the founder of Quantum Economics Mati Greenspan.
Here is what he had to say.Â
We have got a lot of users too who are not pleased and have stated that they had expected this to happen or had switched over since to other ranking platforms.
There is no doubt that Binance will use CMC to promote their own exchange and products, but how far will they go and will it still remain the highest traffic crypto website online?
