The true size of the cryptocurrency market may be as little as 5 percent of its officially reported total. Coinmarketcap (CMC), the leading market data website, has been accused of unquestioningly publishing crypto exchange figures, despite compelling evidence of manipulation by many trading venues including a glut of Asian platforms. Now, a number of market data websites have ramped up pressure on exchanges to provide accurate figures.
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Fake It Till You Make It
Due to its dominance, Coinmarketcap exerts a significant pull over the cryptocurrency market, incentivizing exchanges to inflate their reported trading volume, in a bid to game the ratings system. CMC ranks exchanges by both reported and adjusted volume, in a bid to thwart the exchanges determined to fake it till they make it as legitimately active trading venues. Nevertheless, fake volume remains a huge problem. Some have disputed Bitwise’s claim that the true…