Popular crypto exchange Binance has made its way to the top by making some innovative decisions and a series of acquisitions that have strengthened the organization’s foothold in the industry. However, the exchange’s most recent acquisition of popular crypto data provider CoinMarketCap has been at the center of a lot of controversies lately.
The crypto community has been constantly criticizing Binance for taking over the popular and independent data site due to concerns that there may be some partiality towards the major exchange. Things got worse when Coinmarketcap changed its ranking metric, citing that it was a move to fight fake volumes.
The new metric being relied on to determine rankings was web traffic. To make matters worse, this move was rejected by the previous owners of Coinmarketcap. In fact, CoinMarketCap’s Chief Strategy Officer and acting CEO Carylyne Chan, said in a podcast interview late last year that web traffic was “not a good indicator.”
The move saw the rankings for exchanges drastically reshuffled and Binance coming out on top. However, Binance continued to claim that Coinmarketcap will remain separate and independent from the exchange.
Amidst all the chaos, Coinmarketcap competitor CoinGecko, became the largest independent crypto data aggregator as it has no external investors.
According to CoinGecko founder and Chief Operation Officer Bobby Ong, these events have motivated the platform to remain independent even though he has been approached by several exchanges, venture capitalists, and angel investors. Ong said in a Forbes interview:
“We have resisted taking external funds as we value our independence. With the reaction of the crypto community post-Binance acquisition, our stand to stay independent seems to have been appreciated by the community. Being a neutral entity is a key factor for the crypto community as the community demands neutrality in the data space.”
At present CoinGecko tracks 5000 cryptocurrencies from more them 300 exchanges. Besides, the platform also analyses the stakeholders in the industry in order to keep an eye on accusations of stakeholders cheating or being a scam, not being impartial or neutral.
On this matter, Ong added:
“When we receive reports of cheating, we put notices out on CoinGecko so that other users will be aware of the bad behavior and hopefully not get cheated as well.”
For now, the data aggregators’ strategy is to continue expanding and keeping up with the latest developments and products that are being launched in the ever-growing crypto market.
“As the leading [independent] crypto data aggregator, we have to move fast and track these new product,” said Ong.
As previously reported by The Daily Chain, Coinmarketcap’s ranking metrics saw another change last month and has now introduced something that it calls a ‘confidence metric’ which uses a machine-learning algorithm to examine all data coming into CoinmarketCap “to determine if the volumes reported by exchanges are inflated, and to what extent”.