I think it's a good move for a number of reasons, which I outline in a similar thread that I started yesterday.
https://bitcointalksearch.org/topic/exchange-liquidity-according-to-cmcs-new-metric-there-aint-much-5202098
Topic: Coinmarketcap fighting exchanges volume inflation (Read 134 times)
I think it's a good move for a number of reasons, which I outline in a similar thread that I started yesterday.
https://bitcointalksearch.org/topic/exchange-liquidity-according-to-cmcs-new-metric-there-aint-much-5202098
I think it's a good move for a number of reasons, which I outline in a similar thread that I started yesterday.
https://bitcointalksearch.org/topic/exchange-liquidity-according-to-cmcs-new-metric-there-aint-much-5202098
They've admitted that their previous metric isn't enough to combat the problem of volume inflation and that they are thinking/hoping that this "Liquidity metric" will be the solution.
They mentioned the details/methodology here but it appears blank page when I open it. Here are the key highlights though:
What do you guys think about this move by coinmarketcap? I would guess it's a move to salvage their losing credibility/reputation and bring back serious traders to use their platform again.
I am not sure where to post this, please move if posted on the wrong board.
In the past year, with increasing volume inflation, the volume metric started to lose its purpose as a reliable way to gauge real trading interest. Other solutions, such as handpicking only a few “trusted” exchanges or using unrelated metrics like web traffic, were non-comprehensive and did not address the root cause of the issue.
Our new metric will focus on what matters most to investors and traders: liquidity. With our Liquidity metric, we hope to provide public good to the crypto markets by encouraging the provision of liquidity instead of the inflation of volumes.
Our new metric will focus on what matters most to investors and traders: liquidity. With our Liquidity metric, we hope to provide public good to the crypto markets by encouraging the provision of liquidity instead of the inflation of volumes.
They mentioned the details/methodology here but it appears blank page when I open it. Here are the key highlights though:
To highlight a few key points:
- Liquidity refers to the ease of being able to trade in and out of an asset, or in this case cryptocurrencies.
- The Liquidity metric by CoinMarketCap takes into account a wider range of key variables from the order book, such as the distance of the order from the mid-price, the size of the order and the relative liquidity of the asset in question.
- The metric has been designed to measure liquidity in an adaptive manner and the calculation is made by polling the market-pair at random intervals over a 24-hour period and averaging the result. This takes into consideration differences in global time zones and the fact that order-book depth changes constantly due to immediate market conditions.
What do you guys think about this move by coinmarketcap? I would guess it's a move to salvage their losing credibility/reputation and bring back serious traders to use their platform again.
I am not sure where to post this, please move if posted on the wrong board.
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