CMC's new ranking approach kicks in Sep 2

[charlie137]

can't wait ahaha https://blog.coinmarketcap.com/2019/08/30/updated-ranking-methodology-new-liquidity-metric-soon/

[carlfebz2]

Highlights

To make sure this is clear, here is what the ranking segmentation will look like with this change:
1.Ranks 1-200: Cryptoassets with a market cap, excluding cryptoassets that don’t meet the criteria in section 10, and excluding cryptoassets with low 24h volume.
2.Ranks 201+: All cryptoassets with a market cap.
3.Remaining Ranks: All cryptoassets without a market cap / with an unknown market cap.


This is a much better version or update for CMC.

[1Referee]

I like the fact that liquidity is going to play a role of importance, but it is just a matter of time before exchanges start to spoof their orderbooks with fake orders to rank up on CMC. I doubt that they will do something to remove these exchanges, because if they really cared they would have removed the exchanges with fake volumes already.

I think the whole point is that people take this site way too serious. There are other sites that already use different metrics to rank coins and exchanges. It's a third party site that shows you what they allow you to see.

[Febo]

CMC's new ranking approach kicks in Sep 2

It is dumb t have all on same list. They should just divide  coins on few categorizes. It is really simple and logical.

[hatshepsut93]

Bitcoin will take a big dip in volume from that too, as currently a ton of reported volume comes from some very shady exchanges. Coinbase, the biggest exchange in the world, is somehow on 40th place when it comes to Bitcoin volume. But it's a good thing, because truth is always better than a lie, and the current inflated volume metric can be actually hurting Bitcoin, since it doesn't look realistic, especially if you take into account Bitcoin's adoption as a currency or an asset.

[seraph_the_wise]

can't wait ahaha https://blog.coinmarketcap.com/2019/08/30/updated-ranking-methodology-new-liquidity-metric-soon/

Yeah, looking for a revamped methodology for years now. They should have tweaked it ages ago.
Liquidity should be a prominent factor for coins, as well as the number of markets served and DAU (for exchanges).
Not worried about fake volumes, as those have costs for the parties involved, cannot be kept forever and tend to fade as markets mature.
Overall a good overdue move to bring more clarity for all.

[bryant.coleman]

They need to change their old methodology and I am glad that they are taking positive steps in that direction. Under the current methodology, centralized coins such as XRP (80% of the circulating supply being held by promoters, either directly or indirectly) are given inflated market capitalization, while coins which are more distributed loses out.

My suggestion is to remove the volume that is held outside free-float and in cold storage from the calculation of market capitalization. In the case of Bitcoin, that would mean excluding the "lost" coins (including the BTC980,000 being held by Satoshi) and exchange coins that are being currently held in cold storage. The updated market cap may be lower by 20% to 30% in the case of BTC, and as much as 80% to 90% lower in case of currencies such as XRP.

[RealMalatesta]

If they really what they are proposing in that article, then it is obvious that a lot of coin will be dropping from some certain rank, especially ripple and some coins like bsv and other that I don’t expect to occupy that rank they have, many of those coins are full of fake volume and if you really want to get the true volume of any coin, it is usually through a reliable exchange.

Coinmarketcap data has never been completely accurate to me, although they are trying their best also,  but I don’t know the criteria they are really using to rank those coin in their record because those coins that I earlier mentioned really does not deserve that position., let's see how the table will turn around now.

[binhvo1505]

yolo, I really like this idea of CMC. Liquidity is really important in the crypto market and it should be one of the important things to be included in rankings.
CMC is still taking steps to change and be more creative, and I really like this innovation.

[romero121]

Coinmarketcap keeps themselves updated with each and every form of issues happening with the market and finds a solution for the same. Coinmarketcap plays a big role in the crypto ecosystem, and following the same more platforms have emerged and these new ones take data from CMC. By September 2 there is a big update and november has got another update based on liquidity metrics. This will help with perfect evaluation of each and every cryptocurrency.

[charlie137]

Coinmarketcap keeps themselves updated with each and every form of issues happening with the market and finds a solution for the same. Coinmarketcap plays a big role in the crypto ecosystem, and following the same more platforms have emerged and these new ones take data from CMC. By September 2 there is a big update and november has got another update based on liquidity metrics. This will help with perfect evaluation of each and every cryptocurrency.

sad they could not care less about the code, tho

[el kaka22]

There were times when some idiot currency would get bought like a thousand dollars or whatever big amount and coinmarketcap would just say "total available times latest price equals market cap" and then make it go even above bitcoin .

I mean they needed a new version and did it and it worked so well but I guess it can never hurt to continue with improvements in business world, this is just a website and that is it, I am pretty sure they are making their money from advertisements which is never liked by the startup companies, however since they are who they are and doing what they always did I see no other way to make money so improving the website would help them insanely, not just calculations but adding other stuff would be wise to find other ways to make money as well.

[o_e_l_e_o]

My suggestion is to remove the volume that is held outside free-float and in cold storage from the calculation of market capitalization. In the case of Bitcoin, that would mean excluding the "lost" coins (including the BTC980,000 being held by Satoshi) and exchange coins that are being currently held in cold storage.

Not a feasible solution. It's impossible to tell which of the early blocks were mined by Satoshi, and so it is impossible tell how many coins Satoshi is holding. It is equally impossible to tell how many bitcoins have been "lost", and how many coins are in cold storage" Furthermore, just because a coin is being held doesn't mean it should be excluded. What would your "cut-off" for inactive coins be? 6 months? A year? 5 years? Just because someone is waiting for the right price to sell, doesn't mean their coins magically no longer count. Lost coins (including Satoshi's) could re-activate at any time.

The article states that tomorrow is just the main announcement. The liquidity based metrics don't actually go live until November 12. Will be very interesting to see what happens which obviously have a ton of fake volume, such as BCH and BSV. Might finally get some of these obvious scam coins out of the top ten.

[yesyes18]

They should do that and make sure we see "real" rankings for the projects or coins that we know of. People have beeb criticizing crypto for the "plethora of fake things" we see in the space. Maybe if the #1 coin ranking platform does rhe appropriate job, there'll be a little more trust in the space.

[BitHodler]

Will be very interesting to see what happens which obviously have a ton of fake volume, such as BCH and BSV. Might finally get some of these obvious scam coins out of the top ten.

I doubt it, but when that happens, Litecoin will be hit much harder due to the insane fake volumes it has been generating for a long time now. BSV is doing much better on that front and may even rise above Bcash and Litecoin.

I however prefer to see the change in action before I believe that there is going to be a significant enough fundamental difference in the way that the new ranking system works.

CMC is incentivized to not be too harsh on the shitcoins and shitcoin exchanges a lot of people visit their site for, because losing them means less valuable ad slots and therefore less income. Big win for its competition.

[numizmat]

Their core issue, I guess is that CMC provides ticker data, not trade data. Some of their more advanced competitors like Coin.Market already provide such data (trades data), so you can calculate how much volume was for 1 second, 1 minute, or 1 hour and so on - you can also check how many trades were to get, for example, btc/usd in a selected price range on all exchanges or on one exchange - that provides much better protection from such fake data for users.

[squatter]

Their core issue, I guess is that CMC provides ticker data, not trade data. Some of their more advanced competitors like Coin.Market already provide such data (trades data), so you can calculate how much volume was for 1 second, 1 minute, or 1 hour and so on - you can also check how many trades were to get, for example, btc/usd in a selected price range on all exchanges or on one exchange - that provides much better protection from such fake data for users.

How does that protect from fake data? I'm not sure I understand this distinction between "ticker" and "trade" data. The volume data coming from exchanges and the coin supplies themselves are the problem. Any service like CMC needs to figure out a way to filter that data.

Litecoin will be hit much harder due to the insane fake volumes it has been generating for a long time now. BSV is doing much better on that front and may even rise above Bcash and Litecoin.

How do you know most of Litecoin's volume is fake and most of BSV's volume is real? BSV is mostly listed on lesser known exchanges with suspicious volume numbers.