Bitwise Asset Management released a report last month that sent shockwaves through the cryptocurrency community. The 227-slide report presented to the SEC in light of the firm’s Bitcoin ETF proposal stated that the data reported by CoinMarketCap was “fake and/or non-economic.”
CoinMarketCap, the cryptocurrency data aggregator, responded to rising concerns by stating they will “add a suite of new metrics so users can get a fuller picture of exchanges and crypto.” However, Mauvis Ledford, CMC’s CTO, has now hit back at Bitwise.
Speaking to CoinSpeaker, the CMC executive stated that Bitwise’s report presented an “incredibly slippery slope.” He questioned the “methodology” implemented by the report, wherein exchanges were rated according to “real” and “fake” volumes from a third-party perspective and the time frame of the data.
According to Ledford, the “accuracy” of Bitwise’s data could not be verified. He went on,
“Though we respect Bitwise, their research did not state any formal methodology that can be used to independently rate an exchange by 3rd parties. Nor did Bitwise state any specific timeframe of their research. How can we verify Bitwise’s accuracy.”
The exchanges that are “verified” can just as easily “go bad” as the ones that are “bad,” claimed Ledford. In the report, Bitwise identified only ten exchanges that presented “real volumes.” These included Coinbase Pro, Bittrex, Binance, bitFlyer, Gemini, Poloneix, Kraken, Bitstamp, Bitfinex, and itBit.
Ledford added that “fake volumes” were a regularity when dealing with cryptocurrency exchanges, especially at a juncture when the “industry is evolving.” He added that “multi-faceted” tools need to be incorporated to tackle these issues.
With calls from the community to remove exchanges that report “fake volumes,” CMC took a more measured approach, according to the CTO. CMC intends on making users privy to more tools so that the required context is built prior to assessments made on which exchange was “fake” and “real”.
The aggregator will also look to add a slew of new metrics that can tackle exchange data through the lens of liquidity and wallet storage, among others.
“Instead of removing data you can expect to see more tools to create custom views and filter through data in a way that is most relevant to each user. We’re also working on adding new metrics to evaluate exchanges beyond volume like liquidity, cold/hot wallet storage etc.”
The CTO also stated that CMC will not play the role of a “censor.” Instead, CMC will provide parameters to allow context so that the data can be seen for what it is, and users can come to their own independent conclusions.
He concluded by saying,
“To repeat, our role is not to censor data but to provide enough tools and context for users to make their own informed decisions.”
The post CoinMarketCap CTO hits out at Bitwise’s report; says CMC’s role is to give context and not censor data appeared first on AMBCrypto.