70% of Crypto Exchanges Have Complied With CoinMarketCap’s Transparency Initiative

Crypto data provider CoinMarketCap says most listed exchanges have complied with its transparency-boosting mandatory data requests.

The news marks the end of the first phase of the site’s Data Accountability & Transparency Alliance (DATA) initiative, which pushes for stricter disclosures, which include live trading and order book data. More accurate, timely and unbiased information will enable site users to draw more informed conclusions from CoinMarketCap data, the firm said in a statement.

“The new and detailed criteria for listings will provide clear and concrete guidelines for everyone looking to be listed on CoinMarketCap,” said Carylyne Chan, global head of marketing at CoinMarketCap. “We want to be as exhaustive as possible, eventually listing every qualifying project and exchange on CoinMarketCap!”

Currently listed cryptocurrency exchanges were given 45 days to respond and submit the queried information beginning on May 1.

The company confirmed over the weekend that 70.3 percent of all currently listed exchanges have fulfilled the expected requirements, and will continue to be included in CoinMarketCap’s calculations of volume-weighted average price and adjusted trading volume.

“We are highly encouraged after seeing strong support for our DATA initiative so far,” said Chan. “With these submitted data points, we aim to provide more meaningful analyses and metrics for our users, and empower them with information to do their own research even more effectively.”

Exchanges that have not submitted the requisite information will be listed below those that have done so on the rankings. However, firms that submit the requested data will have their positions restored on a rolling basis.

CoinMarketCap also intends to bolster its “previously laconic listing requirements,” by expanding the set of measures that it uses to evaluate projects and exchanges, including factors such as trading volume, community interest, traction, team, product-market fit, impact, uniqueness and time in market.

While listing requirements are becoming more stringent, CoinMarketCap has also unveiled an “untracked listing” category, so projects that miss the minimum requirements for tracking market data can still appear on the website. To progress into the more dignified “tracked listing,” companies will have to “exhibit strengths in a number of areas [during] the revised evaluation.”

The company is also championing transparency within its own internal strategies, for the first time publishing its delisting policy. Some notable causes for delisting include “low liquidity or suspicious trading activity, cessation of business, and misleading or deceptive initial applications that were later found out, unlawful activity,” according to the statement.

CoinMarketCap is currently preparing for its first DATA roundtable with alliance partners, slated for sometime in mid July. Discussion topics may include standardization of definitions, tickers, and data disclosures via API, as well as confirming the DATA Phase 2 metrics to be collected.

CoinMarketCap image via Shutterstock

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