Leading cryptocurrency data provider, CoinMarketCap has swiftly moved to address allegations that the company manipulated its exchange rankings in a bid to throw more spotlight on the parent company, Binance, at the expense of competitors.
A new exchange ranking update on CoinMarketCap on June 4 notably demoted derivatives exchanges including BitMEX, ByBit, and Deribit to the 170+ ranks. These Binance competitors also had a liquidity score of 0 based on the new algorithms, even though they contribute the most significant trading volume for crypto derivatives products in the industry.
These allegedly manipulated rankings once again sparked debates around the integrity of exchange data on CoinMarketCap, especially since the recent Binance acquisition for a rumored $400 million.
An indifferent Deribit Twitter account said:
We are glad to inform you that @CoinMarketCap has ranked Deribit exchange at #179 with a liquidity score of 0. We want to take this moment to congratulate all the exchanges on the list that we’ve never heard of.
This is great work guys. 🤡
— Deribit (@DeribitExchange) June 8, 2020
Only spot markets are included in the rankings
Following allegations that the company had only manipulated data in favor of Binance, CoinMarketCap has sought to clarify the basis for its latest exchange ranking.
Acknowledging that derivative exchanges are not ranking correctly in the latest roll-out, the firm linked its June 4 update following the changes as proof that the “latest ranking applies to spot market pairs and exchanges.”
The data provider also promised to introduce soon a separate page for derivative exchanges, a market where the platforms affected by the latest rankings are dominant.
As stated in our announcement, the latest ranking applies to spot market pairs and exchanges. A separate page will be available for derivative exchanges in the near future. <2/2> https://t.co/uwTrnYvTqN pic.twitter.com/SCUgEbtTkz
— CoinMarketCap (@CoinMarketCap) June 8, 2020
All eyes will no doubt be on the new derivative exchange ranking for which CoinMarketCap has not provided a specific release date.
Meanwhile, in another recent report about faulty data on CoinMarketCap, Coinfomania reported that the data provider updated its rankings to accurately reflect that thirty Ethereum-based tokens uniformly dominate its list of most used tokens.