Since Binance bought CoinMarketCap, some important changes have taken place. One of them is the change made to the classification system of exchanges they had, and now because of those changes it places Binance in the top. Binance’s CEO, Changpeng Zhao, has spoken about these changes to CoinMarketCap.
The news was announced in Zhao’s Twitter account a few days ago. The now owner of CoinMarketCap pointed out that these modifications prevent exchanges from standing out by artificially inflating market volumes. It has been criticized that some do so to appear larger than they are.
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Changpeng Zhao’s view on the changes in CoinMarketCap metrics
What’s new is that now CoinMarketCap’s new metrics focus on web traffic. Now, metrics including page views, time on the site and bounce rate are more taken into account to really see how much human activity there is on an exchange.
What was curious to many is that in this system Binance is the leader in the ranking. According to CoinMarketCap 100% of the activity in Binance is human. In contrast, close rivals Coinbase Pro and Kraken achieved a web score factor of 972 and 856, respectively, on a scale where 1000 is the maximum.
Changpeng Zhao welcomed the fact that the cryptomoney data company, tens of millions of dollars worth / anything relevant to the blockchain industry / express their interest / join us in denver next week / a new fintech-focused division, has changed its classification system for exchanges. Now, Binance (the company that bought CoinMarketCap) leads the list indisputably.
Changpeng Zhao welcomed the change in the classification system of CoinMarketCap, the data company for cryptomonies. Binance (the company that bought CoinMarketCap) now leads the list hands down.
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Additionally, the new classifications only show the volumes supplied by the exchanges themselves. In this metric as well, Binance leads the list, with reported volumes of just under US$ 8 billion in 24 hours. Simultaneously, Kraken and Coinbase volumes are approximately US$ 450 million per day.
For Changpeng Zhao, the improvement of this CoinMarketCap ranking is still possible, but he considers it a significant advance.
In addition, the CoinMarketCap blog post said the site is also designing a new algorithm that would use liquidity and book entries. The goal is to better detect disparities between actual and reported volumes.
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A funny thing is that, until last year, when it was still an independent company, for CoinMarketCap the web traffic of the exchanges was not a good indicator and was not included in the ranking.
Or at least that’s what Carylyne Chan, who was CoinMarketCap’s chief strategy officer and is now acting CEO, said. However, she speaks of an update of the metric, not the replacement of other factors.