Binance CEO Changpeng Zhao spoke about the stock market rank at CoinMarketCap.
The stock market rank prepared by CoinMarketCap after it was purchased by Binance was reacted by many people. This ranking, which was first criticized by the OKEx team, then started to be criticized by Huobi.
Some names in the crypto money community say that it is not a coincidence that Binance is pulling the summit in this ranking prepared by CoinMarketCap, this is done intentionally. Thus, it is implied that Binance obviously manipulates CoinMarketCap.
Binance CEO Changpeng Zhao shared a blog post the other day and responded to all these claims. Changpeng Zhao, who said that CoinMarketCap is now affiliated with Binance and controlled by Binance, said that the CoinMarketCap team was acting largely independently. According to his statements, even though CoinMarketCap team has to inform Binance management about the development process of major projects, it can make decisions independently from Binance on many issues.
Volume and Number of Visitors
One of the most important criteria used in the ranking of the stock exchange prepared by the CoinMarketCap team is the monthly number of visitors of that exchange. Zhao says that this criterion does not fully reflect the truth, and that he knows it is insufficient on certain issues. At this point, however, it reminds people that “it is more difficult than predicted to prepare a ranking for crypto exchanges”. Because there are dozens of different criteria that can be used to compare crypto exchanges. Binance is at the top of the list, especially because it outperforms its competitors in terms of volume and monthly visitors.
But Zhao does not neglect to add that this situation may change over time. According to his statements, the CoinMarketCap team continues to work to improve this ranking and generate new ideas. Over time, we can see that the criteria used in this ranking, and hence the ranking, have changed.
What will be false volumes?
Today, one of the biggest problems of the crypto money sector is probably fake volumes. Many exchanges are forged to increase their trading volume, thus leaving their competitors behind. The bad thing is that exactly how much of the volume in these exchanges is ‘real’.
One of the biggest criteria that CoinMarketCap currently uses to rank exchanges is the trading volume on those exchanges. But what about the fraudulent exchanges on the trading volume? It looks like nothing will happen to these exchanges, and CoinMarketCap will not take any steps to eliminate this fraud. Binance CEO says this on the subject:
“In order for CoinMarketCap to be 100% neutral, it needs to share every data from exchanges as it is with people. CoinMarketCap did exactly that, and then it happened. Most of the data from the exchanges turned out to be fake. But in order to decide which of these data is real and which is fake, it is necessary to be subjective, which is against the principle of “impartiality.” We can prepare an algorithm to extract fake data, or even we are preparing it. But even when deciding which algorithms to use, we will have to be subjective. So even though it has flaws, it seems like we have to continue with this system for now. ”
Zhao also says that Binance was not deliberately placed first in this ranking. Stating that each exchange is ranked according to certain criteria, Zhao said; He states that neither Binance nor another stock exchange has been privileged.