Binance CEO Changpeng "CZ" Zhao. Credit: Binance
The most popular cryptocurrency price aggregator site has rolled out a new way of ranking exchanges that keeps owner Binance at the top of the exchange table.
CoinMarketCap came under fire last month after its new web traffic-based ranking system gave Binance – which for a rumored $400 million in April – a perfect score. “Six weeks in and Binance’s acquisition of CoinMarketCap [is] already being abused to manipulate the rankings,” an irate Mati Greenspan at the time.
Well, the price site has some good news: “We have just implemented a new algorithm to replace the previous default ranking of exchanges by Web Traffic Factor,” reads an from Thursday.
CoinMarketCap’s new ranking system basically amalgamates all the metrics used to rate an exchange’s individual markets – its or market, say – into one easy-to-read score.
There are two components: The market pair is an exchange’s reported trading volume, liquidity and web traffic factor, combined to create a single score. This is evaluated by a “Confidence” indicator where CoinMarketCap’s own algorithm passes judgment on if the score is accurate, or if it looks like it’s been fudged.
Carylyne Chan, CoinMarketCap’s acting CEO, said in a statement the new rankings “will provide our users with an accurate reflection of the trading venues, as they are scored on a triage of factors that provide a complete picture.” The “machine learning algorithm,” she added, would dynamically adjust to improve accuracy as it receives more data over time.
New metrics, including new “quantitative factors,” were currently undergoing tests and could be incorporated into the new ranking system at a later date.