CoinMarketCap Sets November Target Date for New Liquidity Rankings

CoinMarketCap, a major source of data about all traded cryptocurrencies, has set the target date of Nov. 12, 2019 to announce a new liquidity ranking system.

CMC revealed the news during the first virtual roundtable held today, Aug. 27, of the Data Accountability & Transparency Alliance, a group of exchanges and projects in the crypto space formed in May 2019.

DATA currently counts Binance, Bittrex, Huobi, OKEx and others as members.

During the DATA roundtable, CoinMarketCap presented three topics for the alliance's general consideration: the use of liquidity metrics, self-reported data and a unified crypto asset ID database.

A dashboard for self-reporting data will also launch on Oct. 14, 2019.Switch to liquidity.

The idea of using liquidity metrics to rank exchanges arose in part due to problems with wash trading in the current volume rankings on the site, according to CMC's presentation.

The second point - self-reported data - was brought up as a way to incentivize transparency in the crypto space.

The CMC presentation put forward the idea of receiving badges as rewards for the number of data points that an exchange reveals, referring to this as a carrot for people to fill out more information in a way similar to LinkedIn's ranking system.

Examples of data points that could lead to badges include KYC, office location and shared order books with other exchanges.

In May, CMC stated that they would begin removing exchanges from their site if they didn't provide mandatory data starting in June 2019.