CoinMarketCap (CMC) has introduced new changes to its crypto exchange ranking algorithm. After the previous method was harshly criticized by Binance competitors, CMC will start using a mix of Liquidity Score, pairing volume, and Web Traffic factor as its new and improved algorithm.
For your information, CMC is the most popular website to check crypto prices and ranking based on market cap. While there are other websites that try to do the same thing but the majority of people always favour CMC over its competitions. Since a while ago, Coinmarketcap has been acquired by Binance. Shortly after acquiring CMC, Binance quickly introduced a new algorithm for its crypto exchange ranking system. At the time, web traffic became the primary factor in the algorithm.
However, this decision was seen as very controversial as the change at the time immediately favoured Binance over other exchanges. Considering Binance is the parent company of CMC, many other exchanges accuse Binance of double standards. After the massive amount of criticisms, CMC decided to change its algorithm once again for its crypto exchange ranking page.
As mentioned in the first paragraph above, this change would introduce Liquidity Score and pairing volume as major factors besides the Web Traffic factor that was already used in the previous change.
Not only that, but CMC would also introduce a new metric called Confidence, which utilizes machine-learning also to analyze and filter all data to make sure the reported trades by exchanges are real and not really inflated with wash trading issues.
Even though this new change by Coinmarketcap is welcomed by its users, many are still sceptical as they believe Coinmarketcap is just trying to put Binance at #1 spot in its crypto exchange ranking web page.
Source: Cointelegraph
