Odaily Frontline｜Follow-up to the BitMEX Ranking Controversy: CMC and Changpeng Zhao Come Out to Clarify

余YU

2020-06-09 14:22 (UTC+8)

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Changpeng Zhao stated that Binance did not conduct wash trading. CMC said the new metric is not applicable to derivatives exchanges.

This article comes fromCryptopotato, Original Author: Mandy Williams

Odaily Translator |

This article comes from

, Original Author: Mandy Williams

The controversy over Binance’s acquisition of CoinMarketCap (CMC) has been ongoing and appears to have intensified due to CMC’s recent update to its ranking algorithm.

Following an update to CoinMarketCap’s exchange ranking algorithm, several major crypto exchanges lost their previously high rankings and the new rankings came as a surprise. CoinMarketCap is the world's leading ranking platform and one of the largest in the industry. That's why CMC's position is important.

Meanwhile, Binance has a perfect score and is currently number one. This caused discontent, as many crypto users felt that CMC was favoring Binance because of the acquisition.secondary titleChangpeng Zhao: Binance did not conduct wash trading

In response to netizens' doubts about wash trading,

Changpeng Zhao revealed a "little secret" on Twitter

CZ pointed out that while most cryptocurrency exchanges report a transaction of 1 BTC as a volume of 2 BTC (1 buy and 1 sell), Binance reports it as a volume of 1 BTC. This is not a new development for the exchange, as he further revealed that Binance has been doing this since its launch in 2017.

This means that Binance is only reporting half of the trading volume compared to what other crypto exchanges are reporting. Even so, Binance still has the highest trading volume, and Binance Futures is quickly becoming the leading derivatives platform.

Changpeng Zhao said they chose to do this because it is the standard way traditional exchanges report trading volume. He also added that this helps them "hide" their transaction volume so they "are not perceived as much larger." Binance is not doing wash trading.

secondary title

New metrics from CoinMarketCap

CMC has decided to replace its default ranking mechanism of exchanges by Website Traffic Factor with a new metric to provide more accurate data.

CoinMarketCap reported last week that it had completed the first phase of a new round of upgrades, but with major exchanges including BitMEX currently at the bottom of the rankings, the results were not entirely satisfactory.

secondary title

In response to doubts,CMC: The new indicator does not apply to derivatives exchanges, a separate page will be launched, "In the recently launched exchange ranking algorithm, the ranking of derivatives exchanges is not reasonable, which is somewhat confusing. We would like to take this opportunity to clarify. As we said in the announcement, the latest ranking is for the spot market Trading pairs and exchanges. In the near future there will be a separate page for derivatives exchanges.”

Odaily Frontline｜Follow-up to the BitMEX Ranking Controversy: CMC and Changpeng Zhao Come Out to Clarify

This means that Binance is only reporting half of the trading volume compared to what other crypto exchanges are reporting. Even so, Binance still has the highest trading volume, and Binance Futures is quickly becoming the leading derivatives platform.

CoinMarketCap reported last week that it had completed the first phase of a new round of upgrades, but with major exchanges including BitMEX currently at the bottom of the rankings, the results were not entirely satisfactory.

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