Odaily Frontline | Ranked 175th on the CMC exchange, BitMEX expresses dissatisfaction
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Summary
Summary
- BitMEX ranks 175th on CoinMarketCap exchange;
- BitMEX has a liquidity score of 0, as do Deribit and Bybit;
At press time, CoinMarketCap has pushed BitMEX to number 175 in the exchange rankings. Deribit and Bybit also dropped in rankings, raising concerns about CoinMarketCap's ranking process.
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questioned about loss of objectivity
The impact of Binance's acquisition of CoinMarketCap is becoming increasingly apparent.
BitMEX, arguably the most liquid derivatives exchange, has slipped to No. 175 on the CoinMarketCap exchange ranking after reevaluating its ranking mechanism.
For comparison, BitFlyer is ranked seventh in CoinMarketCap’s latest rankings.
The data shows that BitMEX has a liquidity score of zero and BitFlyer has a liquidity score of 131. You know, the 24-hour trading volume of BitMEX is 40 times that of BitFlyer.
But BitMEX is not alone in its liquidity score of zero. The same goes for the two major derivatives exchanges - Deribit and Bybit, so the rankings of the two also fell to the 170-plus position.
Notably, over the past 24 hours, BitMEX, Deribit, and Bybit facilitated over $3 billion in trade volume.
Binance remains firmly in first place. This is nothing new, at the same time its futures trading is quickly catching up to exchanges such as BitMEX.
However, Binance’s competitor, Coinbase, is firmly in the top five, so the surprise in this ranking may be due to flaws in the machine learning algorithms used by CoinMarketCap rather than intentional.
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Community dissatisfied, rivals grow
On April 2, Binance announced the acquisition of CoinMarketCap (CMC), a cryptocurrency market data website. Following the acquisition, CoinMarketCap will continue to operate as an independent entity. Backed by Binance's professional support, resources, and commercial scale, CoinMarketCap can continue to provide data on the industry's crypto asset market.
On the morning of April 3, Binance founder Zhao Changpeng responded to a question about the acquisition of the cryptocurrency market data website CoinMarketCap in an AMA. Changpeng Zhao said that CoinMarketCap is one of the most valuable platforms in the industry with a large number of users. The acquisition is not to import all its traffic into Binance, but to expand its own ecology. It is hoped that in the future, CoinMarketCap will have 10 times or even a hundred times the growth space, so that more people can more easily obtain valuable data. We can't sacrifice one company to make another, that's wrong. Binance has proven its competitiveness and does not need to capture the value of CoinMarketCap. In the future, the two companies will maintain independent operations and will not give each other any unfair privileges.
On May 15, CoinMarketCap updated the exchange rankings and added a network traffic indicator to the new ranking calculation, which considers multiple data factors, including page views, number of unique visitors, bounce rate, service time, relative Ranking and keyword searches on major search engines. The latest rankings show that Binance, the parent company of CoinMarketCap, currently ranks first, Coinbase Pro ranks second, and BitMEX ranks third. This situation sparked discussions among Chinese and foreign netizens and questioned the independence of CoinMarketCap data.
On May 29, CoinMarketCap launched a new indicator "Confidence", which ranks exchanges and market trading pairs based on some factors designed to reduce the impact of false trading volume on platform data. The indicator uses a machine learning algorithm to examine all data ingested by CMC "to determine whether, and to what extent, exchange-reported trading volumes are overstated."
CoinMarketCap has already been forced to adjust its ranking mechanism after receiving criticism from the community. Now that the top derivatives exchange has been relegated to the bottom of the rankings, this criticism will only intensify.
The crypto community has come to support the narrative that CoinMarketCap has lost its integrity following its recent acquisition by Binance.
Despite these misgivings, CoinMarketCap still accounts for the majority of web traffic, with over 30 million total visits in May 2020.
But alternatives to CoinMarketCap, such as CoinGecko, CryptoCompare, and Nomics, have also seen strong growth in previous months, suggesting that some users are gradually switching from CoinMarketCap to other platforms.
