The ongoing controversies with Coinmarketcap and its exchange rankings took another turn as high profile competitors of its new parent company, Binance, were relegated to positions closer to the bottom 200 than the top 10.
Binance recently took over the popular ranking site with much concern that there would be a conflict of interest. Despite being assured that there would be no preferential treatment of Binance, the ranking site has made changes to its rankings that have not only benefited Binance, but stung its competitors.
First, there was the decision to change the main metric for exchange ranking to website traffic, a metric that has been roundly criticised before and instantly hoisted Binance to the top of the pile, and the latest changes have now impacted derivatives trading platforms like BitMEX and Deribit.
BitMEX has fallen to a position of 174 in the rankings, and this is despite it having the second-highest web traffic, the newly chosen top metric. Meanwhile, Deribit is down at 179th. Coinmarketcap has explained its position stating this has to do with derivatives trading platforms.
The changes being implemented at Coinmarketcap under Binance have dealt some major blows to the makeup of the exchange rankings as many know and understand them and they seem to be trying to move away from the most trusted metric of trading volume. Of course, there are a number of issues surrounding trading volume in the space, and this is the part of the reason for the changes, according to the site.
The recent changes have come in and changed the web traffic metric which is now inexplicably not as important as a post read last week: “We have just implemented a new algorithm to replace the previous default ranking of exchanges by Web Traffic Factor,” the site explained.
This new measurement however still leaves Binance at the top.
Ire for derivatives platforms
The changes have also significantly impacted the state of derivatives platforms like BitMEX and Deribuit which has been explained by Coinmarketcap as such:
“There has been some confusion about derivative exchanges not ranking properly in the latest roll-out. We’d like to take this chance to clarify. As stated in our announcement, the latest ranking applies to spot market pairs and exchanges. A separate page will be available for derivative exchanges in the near future,” it was tweeted.
This has not been sufficient for some as these decisions seem predicated on highlighting Binance at the top and downgrading any competition.