Kai Sedgwick: “Honest Coinmarketcap” Claims to Provide Accurate Cryptocurrency Datawash-trading true-volume trade-volume n-markets-and-prices markets-and-prices fake-volume exchanges coinmarketcap cmc
In the last 24 hours, $7 billion worth of bitcoin (BTC) was traded globally. That’s according to data provided by Coinmarketcap, the industry’s go-to aggregator of cryptocurrency data. Not everyone agrees with that figure however. “Honest Coinmarketcap” is a new project that aims to set the record straight and do away with inflated trade volumes.
“Honest CMC” Alleges Massive Fake Volume
Allegations of wash trading and fake volume have dogged the cryptocurrency markets for years. If true, this behavior is not the fault of Coinmarketcap (CMC). But it is the duty of sites such as CMC to report data accurately, for their own reputation and for the sake of everyone in the cryptocurrency space. Due to the way it pulls its data from exchanges, exacerbated by the way these platforms record trading activity, Coinmarketcap has come in for criticism.
In an attempt to obtain a true picture of global cryptocurrency volume, Andrew Rennhack has created an alternative to CMC that he’s dubbed “Honest Coinmarketcap”. The project is rudimentary, and does not account for the many variables that can affect a coin’s trading volume. If its data is to be believed, however, cryptocurrency trading volumes have been massively overstated.
Trading Volumes Could Be Overstated by 80% or More
Clicking on the second tab in the Honest Coinmarketcap spreadsheet compares the listed and true volume for popular cryptocurrencies traded against various fiat currencies. It reports BTC and ETH’s volume as being 80% fake, with XRP and BCH faring slightly better at 43% and 70% respectively. Most other coins in the top 20 by market cap have fake volume of between 40% and 90%.
Although the data produced by Honest CMC should not be taken as gospel, its findings do tally with a previous report that claimed trading volume on some exchanges to be exaggerated by as much as 95%. Given Coinmarketcap’s dominance – the site now ranks among the world’s top 400 websites – it will continue to serve as the industry benchmark for trading data. Unless CMC changes the way it captures its raw data, trade volumes will remain unadjusted, no matter how inaccurate they may be.
Do you think trading volume is overstated and if so do you think it’s the obligation of Coinmarketcap to record this? Let us know in the comments section below.
Images courtesy of Shutterstock.
Need to calculate your bitcoin holdings? Check our tools section.
The post “Honest Coinmarketcap” Claims to Provide Accurate Cryptocurrency Data appeared first on Bitcoin News.
Original article was created by: Kai Sedgwick at news.bitcoin.comDisclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency or ICO.
One more thing you may be interested in:
Interested in Cryptocurrencies and ICO's?
Follow our telegram channel for daily cryptomarket reports!Join @cointrends
|1 hour ago||exchanges|
|13 hours ago||exchanges|
|9 hours ago||wash-trading|
|1 day ago||n-markets-and-prices|
|5 days ago||n-markets-and-prices|
|1 day ago||trade-volume|
|1 week ago||trade-volume|
|6 days ago||markets-and-prices|
|6 days ago||markets-and-prices|
|2 months ago||cmc|
|1 week ago||coinmarketcap|
Stay on top of Altcoins and ICO trends.
Subscribe to our free Weekly Cryptomarket report
Delivered once a week, strongly to your inbox.Subscribe to our mailing list
May 25, 2018
Tezos was conceived as a governance-based blockchain to rival Ethereum, but it’s become more synonymous with protracted legal battles and internecine conflict. As the latest class action lawsuit drags its way through the courts, the Tezos community has petitioned for an end to all the legal...From: Kai Sedgwick
Coinjar has announced the launch of a cryptocurrency exchange that will exclusively offer AUD currency for fiat pairings. The exchange currently offers AUD and BTC pairings for bitcoin, Ethereum, Litecoin, and Ripple. Also Read: US Justice Department Investigates Price Manipulation in Bitcoin...From: Samuel Haig
Two Bitcoin Cash (BCH) proponents, Javier Barrera and Andrés Rivera, believe the evolution of cryptocurrency will be bolstered by the BCH network so they recently developed a payment processor called Bitek.co. The company offers merchant processing with payable invoices, and accounting services...From: Jamie Redman
May 24, 2018
Just recently news.Bitcoin.com reported on the Zimbabwe-based exchange Golix filing a lawsuit over the recent Reserve Bank of Zimbabwe (RBZ) ‘cryptocurrency ban’ that was issued in a financial guidance circular earlier this month. Now, according to numerous regional reports, the Zimbabwe...From: Jamie Redman
It appears Bitcoin Gold (BTG) has been double spend attacked over and over again, totalling something in the neighborhood of $18 million at current prices. BTG forums seem to have been tracking the hack, going as far back as last week, monitoring the controversial coin’s hashrate, ultimately...From: C. Edward Kelso
The Irish revenue service has published a manual with guidelines aimed at eliminating the uncertainty surrounding the taxation of crypto transactions. Investors and traders of digital coins, businesses working with cryptocurrency and tax advisors, of course, can now find answers to many but not...From: Lubomir Tassev