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CoinMarketCap users question the current stock market ranking

June 8, 2020

According to the latest CoinMarketCap update, which introduced the “trust factor” for ranking exchanges, users are facing perceived injustices against popular platforms.

A pseudonymous Twitter user named Cosmonaut disagreed CoinMarketCap for placing BitMEX, one of the most popular futures exchanges, at 175.

Such a low position appears unusual in the new CoinMarketCap rankings, in which web traffic is one of the main factors. This update takes place after a period of several weeks in which the exchanges were classified exclusively according to web traffic, which also caused criticism.

CoinMarketCap users question the current stock market rankingCoinMarketCap users question the current stock market ranking

According to CoinMarketCap, BitMEX has an almost perfect web traffic score of 960, only 40 points below the Binance high of 1000. However, BitMEX’s liquidity score is zero.

The metric currently only contains spot numbers

While BitMEX was selected by the community, other popular derivative platforms like Deribit and Bybit share their neighborhood with rankings at the time of publication of 177 and 179. respectively.

Actually, A strong change can be seen from position 175, after which all stock exchanges have zero liquidity values. Decentralized exchanges such as Bancor and Uniswap can also be found below in the ranking.

When Cointelegraph contacted A representative of CoinMarketCap explained that the current ranking only takes spot exchanges into account and promised that derivative platforms would soon be classified as well.

However, as Cosmonaut emphasized, several stock exchanges in the top 50, such as CoinDCX and Huobi Russia, also have zero liquidity values, making it difficult to interpret the new ranking mechanism.

A notable exception in the ranking of the derivatives platform is FTX, which is in 74th place. The price aggregator has often been criticized for creating rankings that favor its new owner, Binance. Although Binance is an FTX investor, the discrepancy can be explained by the fact that the platform has multiple spot markets that may define its position.

There is more to be done

The previously rejected web traffic metric was questioned as a reliable predictor. Exchanges that rely heavily on professional API traders can be at a disadvantage, while unscrupulous companies can manipulate the numbers themselves.

As Cointelegraph has previously reported, CoinMarketCap has taken an iterative approach to improve its ranking. Recent criticism suggests that the aggregator’s path to more realistic rankings is not over yet.