CoinMarketCap Exchange ranking is completely off
CoinMarketCap is one of the most visited platform to view coins and exchanges. Their rankings will inform and guide users. They are very important to the crypto space.
However, their ranking is completely off. It seems that there may be criteria that are not mentioned, or that some kind of manipulation is going on.
Top 5 exchanges according to CoinMarketCap
Exchanges are based on the Exchange Score : "CoinMarketCap ranks and scores exchanges based on the following: Web Traffic Factor; Average Liquidity; Volume, as well as the Confidence that the volume reported by an exchange is legitimate. Weights are assigned to the above-mentioned factors and a score from 0.0 to 10.0 is given to the Spot Exchange."
Let's take an example : Bitstamp vs Crypto.com Exchange. As you can see, Crypto.com is beating Bitstamp on Web Traffic Factor, Average Liquidity and Volume by a good margin. However its score is lower. I also checked historical volume to see that Crypto.com was beating Bitstamp.
Another example is Bithumb vs OKEx, where OKEx has a lower score (7.6 vs 8.2) but way higher metrics.
I understand that there could be delays when updating the scores (metrics are not based on daily but on monthly or yearly). Also they are adjusting reporting volume by removing fake volume. However, adjusted volume is not shown, and the exact details of the calculation are not given.
I think it would be fair that users know exactly how the ranking is made, so that users can make an informed descision.
Posted Sep 10, 2021, 10:50 AM UTC